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Fitch rates Sampath Bank debentures A(lka)
Fitch Ratings said it assigned a national long-term rating of A(lka) to Sampath Bank plc's proposed Basel III compliant subordinated debentures.
The notes will total 7.5 billion in Sri Lanka rupees, mature in five years and carry fixed coupons, Fitch said.
The notes include a non-viability clause and will qualify as regulatory tier II capital for the bank, the agency said.
The proceeds will be used to strengthen the company's tier II capital base and support its loan book expansion, Fitch said.
The notes are rated one notch lower than the bank's national long-term rating of A+(lka) to reflect their subordinated status and higher loss-severity risks relative to senior unsecured instruments, the agency explained.
Sampath's national long-term Rating is used as the anchor rating because the rating reflects the bank's standalone financial strength, Fitch added.
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