Fitch Rates Seylan Bank's Senior Debentures Final 'A-(lka)'

(The following statement was released by the rating agency) 

COLOMBO/TAIPEI, December 03 (Fitch) Fitch Ratings Lanka has assigned Seylan Bank PLC's (Seylan; A-(lka)/Stable) proposed senior debentures of up to LKR6bn a final National Long-Term 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)' 

For more details on Seylan's ratings, see "Fitch Affirms Seylan Bank at 'A-(lka)'; Outlook Stable" dated 1 October 2014, available at www.fitchratings.com. 

Contacts: 

Primary Analyst Rukshana Thalgodapitiya Vice President +94 1 1254 1900 Fitch Ratings Lanka Limited Level 15-04, East Tower, World Trade Center Colombo 01, Sri Lanka Secondary Analyst Kanishka de Silva Analyst +94 1 1254 1900 Committee Chairperson Jonathan Lee Senior Director +886 2 8175 7601 Media Relations: Bindu Menon, Mumbai, Tel: +91 22 4000 1727, Email: bindu.menon@fitchratings.com. 

Note to editors: 

Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(lka)' for National ratings in Sri Lanka. Specific letter grades are not therefore internationally comparable. Additional information is available at www.fitchratings.com. Applicable criteria, "Global Financial Institutions Rating Criteria", dated 31 January 2014, "National Scale Ratings Criteria", dated 30 October 2013, "Assessing and Rating Bank Subordinated and Hybrid Securities" dated 31 January 2014, and "Evaluating Corporate Governance", dated 12 December 2012 are available at www.fitchratings.com. Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria here National Scale Ratings Criteria here Assessing and Rating Bank Subordinated and Hybrid Securities Criteria here Evaluating Corporate Governance here Additional Disclosure Solicitation Status here 

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