Sri Lanka Fitch rates HNB's debt final 'A+(lka)'
Feb 16, 2016 17:41 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Fitch Ratings said it has assigned Hatton National Bank PLC's proposed subordinated debentures of up to seven billion rupees a final National Long-Term Rating of 'A+(lka)'.
The assignment of the final rating follows the receipt of documents conforming to information already received, and the final rating is the same as the expected rating assigned for the subordinated debt on 4 September 2015, a statement said.
The issue will have a tenor of five years with fixed coupon payments. HNB expects to use the proceeds to reduce asset and liability maturity mismatches while improving its Tier 2 capital base.
Fitch said the proposed subordinated debentures are rated one notch below HNB's National Long-Term Rating, to reflect the subordination to senior unsecured creditors.
“HNB's rating reflects its strong franchise, satisfactory capitalisation, established track record and higher risk appetite than its better-rated peers.”
The ratings on the proposed debentures will move in tandem with HNB's National Long-Term Rating, Fitch said.