Fitch rates Hatton debentures A+(lka)

Fitch Ratings said it assigned a final national long-term rating of A+(lka) to Hatton National Bank plc's issue of unsecured subordinated redeemable debentures of up to LKR 4 billion.

The assignment of the final rating follows the receipt of final documents, which conform to information previously received. The final rating is at the same level as the expected rating assigned on April 11.

The debentures are rated one notch below Hatton's national long-term rating of AA-(lka) to reflect their subordinated status.

The debentures have a five-year tenor with bullet principal repayment at maturity. Coupon payments are at a fixed rate, and paid annually, helping the bank to reduce its exposure to interest rate risk. The debentures do not contain any deferral clauses and therefore Fitch has not assigned any equity credit to this issue, the agency said.

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