Fitch Ratings has assigned Seylan Bank’s proposed Basel II-compliant subordinated debenture issue of up to Rs 5 bn a National Long-Term Rating of ‘BBB+(lka)(EXP)’.
The debentures will have tenors of five and seven years and carry fixed and floating coupons. The debentures are to be listed on the Colombo Stock Exchange and the bank plans to use the proceeds to fund loan growth, strengthen its Tier 2 capital base and reduce structural maturity mismatches.
The final rating is subject to the receipt of final documentation conforming to information already received.
The proposed subordinated debentures are rated one notch below Seylan Bank’s National Long-Term Rating to reflect the subordination to senior unsecured creditors.
Seylan Bank’s rating reflects Fitch’s view that the government of Sri Lanka (B+/Negative) would provide it extraordinary support in case of need because the regulator has classified it as one of six domestic systemically important banks. Fitch assigns Seylan Bank a lower support-driven rating because it has a smaller market share compared with its peers.
The debentures will have tenors of five and seven years and carry fixed and floating coupons. The debentures are to be listed on the Colombo Stock Exchange and the bank plans to use the proceeds to fund loan growth, strengthen its Tier 2 capital base and reduce structural maturity mismatches.
The final rating is subject to the receipt of final documentation conforming to information already received.
The proposed subordinated debentures are rated one notch below Seylan Bank’s National Long-Term Rating to reflect the subordination to senior unsecured creditors.
Seylan Bank’s rating reflects Fitch’s view that the government of Sri Lanka (B+/Negative) would provide it extraordinary support in case of need because the regulator has classified it as one of six domestic systemically important banks. Fitch assigns Seylan Bank a lower support-driven rating because it has a smaller market share compared with its peers.
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