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Saturday Nov 16, 2024
Thursday, 4 August 2016 00:19 - - {{hitsCtrl.values.hits}}
Fitch Ratings has assigned Commercial Bank of Ceylon PLC’s (CB; AA(lka)/Stable) proposed subordinated debentures of up to Rs. 7bn an expected National Long Term Rating of ‘AA-(lka)(EXP)’.
The debentures, which are to have tenors of five and 10 years and carry fixed and floating coupons, are
to be listed on the Colombo Stock Exchange. CB expects to use the proceeds to reduce asset and liability maturity mismatches, and in improving its Tier II capital base.
The final rating is subject to the receipt of final documentation conforming to information already received.
KEY RATING DRIVERS
The proposed subordinated debentures are rated one notch below CB’s National Long Term Rating to reflect the subordination to senior unsecured creditors.
The National Long Term Rating of CB reflects its measured risk appetite relative to peers’, strong
funding profile, solid domestic franchise and sound performance. The ratings reflect Fitch’s expectation
that its nondomestic operations will remain small.
RATING SENSITIVITIES
The ratings on the proposed debentures will move in tandem with CB’s National LongTerm Rating.
CB’s ratings are follows:
National LongTerm Rating: ‘AA(lka)’; Outlook Stable
Basel II compliant outstanding subordinated debentures: ‘AA(lka)’
Proposed Basel II compliant subordinated debentures: ‘AA(lka)(EXP)’
