Home / Financial Services/ Fitch rates DFCC Bank’s senior debt final ‘AA-’

Fitch rates DFCC Bank’s senior debt final ‘AA-’


Comments / {{hitsCtrl.values.hits}} Views / Thursday, 14 March 2019 01:29

Facebook

Fitch Ratings has assigned DFCC Bank PLC’s (DFCC: AA-(lka)/Stable) proposed Sri Lanka rupee-denominated senior debentures a final National Long-Term Rating of ‘AA-(lka)’.

The notes, which will total up to Rs. 10 billion, will mature in five, seven and 10 years and carry fixed coupons. The bank plans to use the proceeds to support its loan expansion. The debentures are to be listed on the Colombo Stock Exchange.

The final rating is the same as the expected rating assigned on 30 January, and follows the receipt of documents conforming to information already received.

DFCC’s National Long-Term Rating captures its developing commercial-banking franchise, relatively weak asset quality and earnings, and the expectation that DFCC would maintain higher capital buffers than similarly rated peers.

The bank’s senior debt ratings will move in tandem with its National Long-Term Rating. An inability to replenish its capital buffers to a level that is commensurate with its risk profile could pressure DFCC’s National Long-Term Rating. Fitch sees limited upside for the bank’s ratings due to its weak franchise.


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS