Fitch assigns Seylan Bank’s Rs. 5 b debenture final ‘BBB+’

Wednesday, 22 June 2016 00:00 - - {{hitsCtrl.values.hits}}

Fitch Ratings has assigned Seylan Bank PLC’s (A( lka)/Stable) Basel II compliant subordinated debenture issue of up to Rs. 5 b a final National LongTerm Rating of ‘BBB+(lka)’.

The final rating is the same as the expected rating assigned on 6 May as detailed in the press release, Fitch Rates Seylan Bank’s Subordinated Debt ‘BBB+(lka)(EXP)’and follows the receipt of documents conforming to information already received.

The debentures will have tenors of five and seven years and carry fixed and floating coupons. The debentures are to be listed on the Colombo Stock Exchange.

Key rating drivers: The issue is rated one notch below Seylan Bank’s National LongTerm Rating to reflect the subordination to senior unsecured creditors.

Rating sensitivities: The rating on the proposed debentures will move in tandem with Seylan Bank’s National Long-Term Rating.