Fitch Ratings has assigned Hatton National Bank’s proposed subordinated debenture issue of Rs 6 bn an expected National LongTerm Rating of ‘A+(lka)(EXP)’.
The debentures, which will have tenors of five and seven years and carry fixed coupons, will be listed on the Colombo Stock Exchange. HNB expects to use the proceeds to strengthen its Tier II capital base.The proposed subordinated debentures are rated one notch below HNB’s National LongTerm
Rating to reflect the subordination to senior unsecured debt.Rating of HNB reflects its strong domestic franchise, satisfactory capitalization and strong performance, which are counterbalanced by a higher risk appetite as seen in the sustained high loan growth that has put pressure on its funding and liquidity profile. The ratings on the proposed debentures will move in tandem with HNB’s National LongTerm Rating.
The debentures, which will have tenors of five and seven years and carry fixed coupons, will be listed on the Colombo Stock Exchange. HNB expects to use the proceeds to strengthen its Tier II capital base.The proposed subordinated debentures are rated one notch below HNB’s National LongTerm
Rating to reflect the subordination to senior unsecured debt.Rating of HNB reflects its strong domestic franchise, satisfactory capitalization and strong performance, which are counterbalanced by a higher risk appetite as seen in the sustained high loan growth that has put pressure on its funding and liquidity profile. The ratings on the proposed debentures will move in tandem with HNB’s National LongTerm Rating.
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