Fitch Rates National Development Bank’s Basel III Sub Debt Final ‘A (lka)’ | Daily News

Fitch Rates National Development Bank’s Basel III Sub Debt Final ‘A (lka)’

Fitch Ratings has assigned National Development Bank PLC’s (A+(lka)/Negative) proposed Basel III-compliant subordinated debentures a final National Long-Term Rating of ‘A(lka)’. The notes, which total up to LKR6.5 billion with maturities of five years, include a non-viability clause and qualify as regulatory Tier II capital for the bank. The bank plans to use the proceeds to strengthen its Tier II capital base and support loan-book expansion. The debentures are to be listed on the Colombo Stock Exchange.

The final rating is the same as the expected rating assigned on 15 February 2019, and follows the receipt of documents conforming to information already received. Fitch rates the proposed Tier II instrument one notch below the bank’s National Long-Term Rating to reflect the notes’ subordinated status and higher loss-severity risks relative to senior unsecured instruments.


 

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