Fitch Affirms Alliance Finance at BB+; withdraws ratings

Wednesday, 20 September 2017 00:00 - - {{hitsCtrl.values.hits}}

Fitch Ratings has affirmed Alliance Finance Company Plc’s (AFC) National Long-term Rating and the ratings on its outstanding senior unsecured debentures at ‘BB+(lka)’.

The outlook on the National Long-term Rating is Stable. Fitch has also affirmed AFC’s outstanding subordinated debentures at ‘BB(lka)’.

At the same time, Fitch has withdrawn all the ratings of AFC because they have been taken private. A full list of rating actions is at the end of this rating action commentary.

Key rating drivers

National ratings and senior debt

AFC’s rating reflects its established but modest franchise, weaker capitalisation stemming from its track record of rapid growth and higher risk appetite relative to peers. This is counterbalanced by improvements in risk controls and asset quality following changes to its management. AFC’s outstanding senior debentures are rated at the same level as AFC’s National Long-term Rating as they rank equally with the claims of the company’s other senior unsecured creditors.

Subordinated debt

The outstanding subordinated debentures are rated one notch below AFC’s National Long-term Rating to reflect their subordination to the claims of senior unsecured creditors.

Rating sensitivities

National ratings, senior debt and subordinated debt

Not applicable.

The rating actions are as follows:

Alliance Finance Company Plc

nNational Long-term Rating affirmed at ‘BB+(lka)’; Outlook Stable; withdrawn

n Senior debenture rating affirmed at ‘BB+(lka)’; withdrawn

n Subordinated debenture rating affirmed at ‘BB(lka)’; withdrawn