Fitch rates Ceylon bank notes BBB+(lkr)

Fitch Ratings said it assigned Commercial Bank of Ceylon plc's proposed Sri Lankan rupee-denominated Basel III-compliant subordinated debentures of up to LKR 20 billion an expected BBB+(lka) national long-term rating.

The bank will sell the notes in five-, seven- and 10-year tenors.

“Fitch rates the proposed Basel III tier 2 notes two notches below the bank's national long-term rating of A(lka). This reflects Fitch's baseline notching for loss severity for this type of debt and our expectations of poor recoveries,” the agency said in a press release.

It plans to use the proceeds to further strengthen its tier 2 capital base, reduce maturity mismatches in the balance sheet and buoy loan growth.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.