brand logo

Fitch withdraws expected rating on Seylan Bank’s proposed senior debt 

10 Mar 2021

Fitch Ratings has withdrawn Seylan Bank PLC’s ‘A(lka)(EXP)’ expected rating, assigned on 21 August 2020, for its proposed senior debenture issuance.  Fitch is withdrawing Seylan’s senior debt expected rating, as it is no longer expected to convert to a final rating. “We do not expect Seylan’s forthcoming senior debt issuance to proceed as previously envisaged,” stated Fitch.   Seylan’s other ratings, including the expected rating of ‘BBB+(lka)(EXP)’ on its Basel III-compliant subordinated unsecured debentures, are not affected by this withdrawal, although the total value of the proposed issuance has been downsized to Rs. 6 billion, from Rs. 10 billion, Fitch noted yesterday (9) in a press release.  On 21 August last year, Fitch Ratings Lanka assigned Seylan Bank PLC’s (A(lka)/Stable) proposed senior debentures an expected National Long-Term Rating of ‘A(lka)(EXP)’. Fitch also assigned Seylan’s proposed Basel III-compliant subordinated unsecured debentures an expected National Long-Term Rating of ‘BBB+(lka)(EXP)’.  The proposed debentures were expected to be a total Rs. 10 billion, with maturities of five to ten years, and were said to be listed on the Colombo Stock Exchange. The bank expected the proposed subordinated debentures to qualify as Basel III-compliant regulatory Tier 2 capital.  The proposed debentures included a non-viability clause whereby they will convert to ordinary voting shares if so determined by the Monetary Board of Sri Lanka. The bank planned to use the proceeds from both proposed senior and subordinated debentures to support expansion of its loan book.


More News..