(The following statement was released by the rating agency)
COLOMBO/TAIPEI, August 19 (Fitch) Fitch Ratings Lanka has
assigned Bank of
Ceylon's (BOC; BB-/Stable) proposed subordinated debentures of
up to LKR8bn a
final National Long-Term Rating of 'AA(lka)'.
The assignment of the final rating follows the receipt of final
conform to information previously received. The final rating is
at the same
level as the expected rating assigned on 3 July 2014.
The debentures, which have tenors of five and eight years and
carry fixed and
floating coupons, are to be listed on the Colombo Stock
Exchange. BOC expects to
use the proceeds to strengthen the bank's regulatory Tier 2
capital base and
reduce asset and liability maturity mismatches.
KEY RATING DRIVERS - NATIONAL RATINGS AND DEBT RATINGS
The proposed debentures are rated one notch below BOC's National
Rating to reflect their subordination to senior unsecured
gone-concern loss-absorption quality in the event of
liquidation, in line with
Fitch's criteria for rating such securities.
RATING SENSITIVITIES - NATIONAL RATINGS AND DEBT
Any change in Sri Lanka's sovereign rating (BB-/Stable) or the
state support to BOC could result in a change in BOC's National
and issue ratings.
A full list of BOC's ratings follows:
Long-Term Foreign Currency IDR: 'BB-'; Outlook Stable
Long-Term Local Currency IDR: 'BB-'; Outlook Stable
Short-Term Foreign Currency IDR: 'B'
Viability Rating: 'b+'
Support Rating Floor: 'BB-'
US dollar senior unsecured notes: 'BB-'
National Long-Term Rating: 'AA+(lka)'; Outlook Stable
Sri Lanka rupee-denominated subordinated debentures: 'AA(lka)'
Primary Analyst (National Ratings)
+941 1254 1900
Fitch Ratings Lanka Ltd
15-04, East Tower, World Trade Center
Colombo 1, Sri Lanka
Secondary Analyst (National Ratings)
+941 1254 1900
+886 2 8175 7601
Media Relations: Bindu Menon, Mumbai, Tel: +91 22 4000 1727,
Additional information is available on www.fitchratings.com.
BOC has a 1.79% equity stake in Fitch Ratings Lanka Ltd. No
than Fitch, Inc. is involved in the day-to-day rating operations
of, or credit
reviews undertaken by, Fitch Ratings Lanka Ltd.
Note to editors: Fitch's National ratings provide a relative
creditworthiness for rated
entities in countries with relatively low international
sovereign ratings and
where there is
demand for such ratings. The best risk within a country is rated
'AAA' and other
rated only relative to this risk. National ratings are designed
for use mainly
by local investors in
local markets and are signified by the addition of an identifier
for the country
as 'AAA(lka)' for National ratings in Sri Lanka. Specific letter
grades are not
Applicable criteria, "Global Financial Institutions Rating
Criteria", dated 31
January 2014, "National Scale Ratings Criteria", dated 30
"Assessing and Rating Bank Subordinated and Hybrid Securities"
dated 31 January
2014, and "Evaluating Corporate Governance", dated 12 December
available at www.fitchratings.com.
Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
National Scale Ratings Criteria
Assessing and Rating Bank Subordinated and Hybrid Securities
Evaluating Corporate Governance
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PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS
here. IN ADDITION,
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