Fitch gives Seylan Bank debentures BBB+(lka)

Fitch Ratings said it assigned Seylan Bank plc's (A-(lka)/stable) proposed Basel 3 compliant subordinated debentures an expected national long-term rating of BBB+(lka).

The notes, which will total LKR 5 billion and mature in five years, include a non-viability clause and will qualify as regulatory tier 2 capital for the bank.

Seylan plans to use the proceeds to strengthen its tier 2 capital base and support its loan-book expansion.

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

The notes would convert to equity upon the occurrence of a trigger event, as determined by the Monetary Board of Sri Lanka, the agency explained.

© 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.