Sri Lanka based BOC’s proposed debt issue of Rs. 8 billion has been assigned a final national long term rating of ‘AA(lka)’ by Fitch Ratings.
The subordinated debentures have tenors of up to 10 years with fixed and floating coupons.
The final rating is at the same level as the expected rating assigned on 12 September 2013 by Fitch.
Fitch says, the proposed debentures are rated one notch below BOC’s National Long-Term Rating of ‘AA+(lka)’ to reflect their gone-concern loss-absorption quality in the event of a liquidation, in line with Fitch’s criteria for rating such securities.
The agency say the subordinated debt rating will move in tandem with the Long-Term Ratings.
“Any change in Sri Lanka’s rating or the perception of state support to BOC could result in a change in BOC’s National Long-Term Rating”, adds the rating firm.