Fitch rates Sampath debentures A+(lka)

Fitch Ratings said it assigned a final national long-term rating of A+(lka) to Sampath Bank plc’s proposed subordinated debentures of up to 7 billion in Sri Lankan rupee.

The final rating follows the receipt of final documents conforming to information previously received. The final rating is at the same level as the expected rating assigned Nov. 11, the agency said.

The debentures, which will have a tenor of five years and carry a fixed coupon, will be listed on the Colombo Stock Exchange.

The proceeds will be used to strengthen its tier 2 capital base and reduce asset and liability maturity mismatches, Fitch said.

The proposed debentures are rated one notch below Sampath’s national long-term rating to reflect their subordination to senior unsecured debt, the agency said.

The rating is driven by the bank’s modest and expanding franchise, Fitch said, and relatively higher risk appetite as seen in its aggressive loan growth and high gold-backed lending until end-2013, which has put pressure on its asset quality.

© 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.