Fitch gives Nations Trust Bank debentures A-(lka)

Fitch Ratings Lanka said it assigned Nations Trust Bank plc's proposed subordinated debentures of up to LKR 3 billion a final national long-term rating of A-(lka).

The debentures have a tenor of five years and the semi-annual coupon payments will be fixed at 13% a year. Nations Trust Bank expects to use the proceeds to refinance maturing debt, fund its projected growth and strengthen the bank's regulatory tier 2 capital base.

The proposed debentures are rated one notch below Nations Trust Bank's national long-term rating to reflect their below-average recovery prospect relative to senior unsecured creditors in the event of liquidation, in line with Fitch's criteria for rating such securities.

© 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.