Fitch withdraws DFCC Vardhana Bank’s ratings on merger with DFCC

Fitch Ratings has withdrawn DFCC Vardhana Bank PLC’s (DVB) National Long-Term Rating of ‘AA-(lka)’ with Stable Outlook. At the same time, Fitch has also withdrawn the ‘AA-(lka)’ rating on DVB’s Basel II-compliant senior debentures and the ‘A+(lka)’ rating on its Basel II-compliant subordinated debentures.    

Fitch is withdrawing the ratings as DVB has merged with DFCC Bank PLC (DFCC, B+/AA(lka)/Stable) and no longer exists, leaving DFCC as the surviving entity. DFCC has assumed the liabilities of DVB, including the debentures. Accordingly, Fitch will no longer provide rating or analytical coverage for DVB.  

The rating action follows DFCC’s announcement on 1 October regarding the merger. DFCC has a licence to operate as a commercial bank from 1 October.  

Fitch affirmed DFCC’s ratings on 8 July. Fitch’s view of DFCC is not affected by the merger because the ratings are already based on the consolidated credit profile.