Nov 26, 2014 (LBO) – Sri Lanka’s Fitch Ratings has assigned Sampath Bank proposed subordinated debentures of up to seven billion rupees a final national long term rating of ‘A+(lka)’.
The full statement is reproduced below:
Fitch Rates Sampath Bank’s Subordinated Debentures Final ‘A+(lka)’
Fitch Ratings-Colombo/Hong Kong-26 November 2014: Fitch Ratings Lanka has assigned Sampath Bank PLC’s (Sampath; AA-(lka)/Stable) proposed subordinated debentures of up to LKR7bn a final National Long-Term Rating of ‘A+(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 11 November 2014.
The debentures, which will have a tenor of five years and carry a fixed coupon, will be listed on the Colombo Stock Exchange. Sampath expects to use the proceeds to strengthen its Tier 2 capital base and reduce asset and liability maturity mismatches.
KEY RATING DRIVERS
The proposed debentures are rated one notch below Sampath’s National Long-Term Rating to reflect their subordination to senior unsecured debt.
Sampath Bank’s rati