Fitch rates DFCC Vardhana Bank notes A+(lka)

Fitch Ratings said it assigned a national rating of A+(lka) to DFCC Vardhana Bank Ltd.'s proposed subordinated debentures of up to LKR1.0 billion.

The agency also said it affirmed its national long-term rating at AA-(lka) with a stable outlook.

The proposed debt issue has tenures ranging from five to seven years and will have both fixed and floating coupons.

The proposed debenture will be used to finance loan growth and also will help strengthen the bank's tier 2 capital, Fitch said.

The ratings reflect an expectation that support would be forthcoming from its parent, DFCC Bank, should it be required, the agency said, adding that DFCC Vardhana Bank plays an important role in expanding the group's product offering.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.