Commercial Bank on Friday secured an issue rating from Fitch Ratings Lanka (FRL) for its upcoming debenture and preference share issue.
The banks Rs. 3 bn debenture issue got a SL AA rating, while the Rs. 1 bn preference share issue will carry a SL AA- national rating.rn
rnCommercial Banks senior debt carries a SL AA+ rating from Fitch. rn
rnIn terms of priority, the debenture will be subordinate to deposits and all senior debt, but will rank above the ordinary and preference shares.rn
rnThe preference shares will be on par with existing preference shareholders, but below deposits and all debt obligations, including subordinated debts.rn
rnBoth SLAA and SLAA- ratings denotes very low credit risk expectations. It indicates very strong capacity for timely payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events, Fitch said in a statement.rn
rnThe funds raised are likely to be used to expand its business growth, and will also improve the maturity matc