Fitch rates Sampath Bank notes A(lka)

Fitch Ratings said it assigned a final national long-term rating of A(lka) to Sampath Bank PLC's Basel II-compliant subordinated debentures of up to 6 billion in Sri Lankan rupee.

The debentures will mature in five years and carry fixed- and floating-coupons, Fitch said.

The outlook is stable.

The proceeds will be used to strengthen the bank’s tier 2 capital base, the agency said.

The issue is rated one notch below Sampath Bank's national long-term rating to reflect the subordination to senior unsecured creditors, Fitch said.

The ratings reflect its lower capitalization relative to that of its peers and relatively higher risk appetite, which offset benefits from the growth of its franchise, the agency said.

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