Fitch rates Hatton National Bank debentures A+(lka)

Fitch Ratings said it assigned an expected national long-term rating of A+(lka) to Hatton National Bank plc's proposed Sri Lanka rupee-denominated Basel III-compliant subordinated debentures.

The notes, which will total 10 billion in Sri Lankan rupee and mature in five and seven years, include a non-viability clause and will qualify as regulatory tier 2 capital for the bank, Fitch said.

The proceeds will be used to strengthen its tier 2 capital base and support its loan expansion, the agency said.

The debentures are to be listed on the Colombo Stock Exchange.

Fitch said it rates the proposed tier 2 instrument one notch below the bank's national long-term rating of AA-(lka) to reflect the notes' subordinated status and higher loss-severity risks relative to senior unsecured instruments.

© 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.