HNB Sri Lanka bonds rated ‘AA-(lka)’ by Fitch
Nov 19, 2014 (LBO) – A 4.0 billion rupees unsecured listed bond sale by Sri Lanka’s Hatton National Bank has been rated ‘AA-(lka)’ by Fitch.
Fitch said the unsecured debt will issued on 3, 5 and 10 year tenors with a fixed rate of interest.
The full statement is given below:
Fitch Rates Hatton National Bank’s Senior Debt Final ‘AA-(lka)’
Fitch Ratings-Colombo/Hong Kong-19 November 2014: Fitch Ratings Lanka has assigned Hatton National Bank PLC’s (HNB; AA-(lka)/Stable) proposed senior debentures of up to LKR4bn a final National Long-Term Rating of ‘AA-(lka)’.
The assignment of the final rating follows the receipt of final documents that conform to information previously received. The final rating is at the same level as the expected rating assigned on 17 September 2014.
The debentures, which are to have tenors of three, five and 10 years and carry fixed coupons, are to be listed on the Colombo Stock Exchange. HNB expects to use the proceeds to reduce asset and liability maturity mismatches.
KEY RATING DRIVERS
The debentures are rated at the same level as HNB’s National Long-Term Rating in accordance with Fitch’s criteria as they constitute unsecured and unsubordinated obligations of the bank.
HNB’s rating reflects its long operating history, strong franchise, satisfactory capitalisation and relatively higher risk appetite.
The ratings on the debentures will move in tandem with HNB’s National Long-Term Rating.
A full list of HNB’s ratings follows:
National Long-Term Rating: ‘AA-(lka)’; Stable Outlook
Outstanding Sri Lanka rupee-denominated senior unsecured debentures: ‘AA-(lka)’
Proposed Sri Lanka rupee-denominated senior unsecured debentures: ‘AA-(lka)’
Outstanding subordinated debentures: ‘A+(lka