Fitch: DFCC Bank notes A+(lka)

Fitch Ratings said it assigned an expected national long-term of A+(lka) to DFCC Bank plc's proposed subordinated debentures of up to 7 billion in Sri Lankan rupee.

The proposed debentures, which will have tenors of five and seven years and carry fixed coupons, will be listed on the Colombo Stock Exchange, Fitch said.

The proceeds will be used to strengthen its tier II capital base and manage maturity mismatches, the agency said.

The proposed subordinated debentures are rated one notch below DFCC's national long-term rating to reflect the subordination to senior unsecured debt, Fitch said.

DFCC's rating captures its developing commercial banking franchise and still-high capitalization, the agency said.

Its weaker asset-quality compared with better-rated peers weighs on its rating, Fitch said.

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