A fresh downgrade by Fitch Ratings signals rising financial pressure on NDB Bank, raising concerns over stability, investor confidence, and the broader outlook for Sri Lanka’s banking sector.
Fitch Ratings Lanka, a globally recognized credit rating agency, has taken a decisive step in revising the National Long Term Ratings and Outlook of National Development Bank, widely known as NDB Bank.
The move, confirmed in its latest rating action report released on April 10, 2026, has drawn attention across Sri Lanka’s financial markets and banking sector.
NDB Bank’s National Long Term Rating, which previously stood at ‘A(lka)’, has now been downgraded to ‘A-(lka)’, reflecting a shift in credit strength and underlying risk profile.
In parallel with the downgrade, Fitch Ratings Lanka has also revised the bank’s Outlook from ‘Stable’ to ‘Negative’, signaling concerns over future performance and potential pressure on financial stability.
The impact of this rating action extends beyond the bank’s core rating. The rating of NDB Bank’s Basel III compliant subordinated debentures has also been revised downward.
As a result, the debenture rating has been lowered from ‘BBB+(lka)’ to ‘BBB(lka)’, indicating a reassessment of risk associated with these financial instruments.
