Hatton National Bank (HNB) saw its rating of AA- (lka)(EXP) for the proposed senior unsecured debentures by Fitch Ratings withdrawn yesterday as the institution has opted to raise funds via a different structure.
While in early September the bank said the issuance of Rs.10 billion would proceed through senior unsecured and subordinated debentures, its proposal will now only comprise of the latter.
HNB officials said the bank will go ahead with subordinated debentures as it would provide a capital buffer which can be pulled into the capital adequacy calculation.
Funds raised would be used to reduce the bank’s asset and liability maturity mismatches while improving its Tier II capital base.
Having assigned the proposed subordinated debentures a rating of ‘A+ (lka)(EXP) on 4 September 2015, Fitch stated that the final rating is subject to the receipt of final documentation conforming to information already received. (SAA)
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