Fitch rates Seylan Bank’s senior debentures final ‘A-’
Friday, 5 December 2014 00:54
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Fitch Ratings Lanka has assigned Seylan Bank PLC’s (Seylan; A-(lka)/Stable) proposed senior debentures of up to Rs. 6 billion a final National LongTerm Rating of ‘A-(lka)’.
The assignment of the final rating follows the receipt of final documents that conform to information previously received. The final rating is at the same level as the expected rating assigned on 4 November 2014.
The debentures, which are to have tenors of four, five and six years and carry fixed coupons, are to be listed on the Colombo Stock Exchange. Seylan expects to use the proceeds to strengthen its funding mix and to reduce asset and liability maturity mismatches.
Key rating drivers
The proposed debentures are rated at the same level as Seylan’s National Long-Term Rating in accordance with Fitch’s criteria as they constitute unsecured senior obligations of the bank. Seylan’s rating reflects Fitch’s view that the Sri Lankan state (BB-/Stable) would provide extraordinary support to the bank, in case of need, because the regulator has identified Seylan as a one of six systemically important domestic banks.
Rating sensitivities
The rating on the debentures will move in tandem with Seylan’s National Long-Term Ratings.
A full list of Seylan’s ratings follows:
National Long-Term Rating: ‘A-(lka)’; Stable Outlook
Outstanding Sri Lanka rupee-denominated senior unsecured debentures: ‘A-(lka)’
Outstanding Sri Lanka rupee-denominated subordinated debentures: ‘BBB+(lka)’
Proposed Sri Lanka rupee-denominated senior unsecured debentures: ‘A-(lka)’
