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Prospect News home > News index > List of issuers B > Headlines for Bancolombia, SA > News item |
Fitch to rate Bancolombia notes BB+
Fitch Ratings said it expects to assign a BB+ rating to Bancolombia SA’s upcoming dollar-denominated subordinated notes.
The notes, for an amount to be determined, will pay a fixed interest to be set at the time of the issuance. The notes will mature on 2027, and interest payments will be made semi-annually until maturity.
According to the agency, the upcoming issuance is expected to be rated two notches below Bancolombia's viability rating of bbb, to reflect loss severity exclusively. There will be no notching due to incremental non-performance risk.
“While these securities rank pari passu with other existing subordinated indebtedness, the loss severity notching is wider on the proposed notes, due to the existence of a full write-down feature, which is not contained in other outstanding subordinated debt,” Fitch said in a news release.
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