Fitch rates Bank of Ceylon notes BB-

Fitch Ratings said it assigned a final rating of BB- to Bank of Ceylon's $500 million unsecured notes due 2018.

The final rating is at the same level as the expected rating assigned in March. The notes have a maturity of five years and coupon payments will be at a fixed rate of 5 3/8% on a semiannual basis.

The proceeds are to be partly used for refinancing near-term maturities, as well as for balance sheet growth.

The notes are rated at the same level as the bank's long-term foreign-currency issuer default rating as they will constitute direct, unsubordinated and unsecured obligations of the bank, Fitch said, and will rank equally with all its other unsecured and unsubordinated obligations.

The bank's long-term issuer default rating is driven by the government of Sri Lanka's high propensity, but somewhat limited ability to provide timely support to the bank at times of distress, the agency said.

The state's high propensity stems from the bank's systemic importance as the largest bank in the country, accounting for nearly 20% of banking system's deposits and assets, Fitch said.

© 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.