Fitch withdraws DVB ratings with merger | Daily News

Fitch withdraws DVB ratings with merger

Fitch has withdrawn DFCC Vardhana Bank's (DVB) national long-term rating of ‘AA-(lka)’. Fitch has also withdrawn the ‘AA-(lka)’ rating on DVB's Basel II-compliant senior debentures and the ‘A+(lka)’ rating on its Basel II-compliant subordinated debentures.

Fitch is withdrawing the ratings as DVB has merged with DFCC Bank and no longer exists, leaving DFCC as the surviving entity. DFCC has assumed the liabilities of DVB, including the debentures. Accordingly, Fitch will no longer provide rating or analytical coverage for DVB.

The rating action follows DFCC's announcement on October 1,2015 regarding the merger. DFCC has a licence to operate as a commercial bank from October1, 2015. Fitch's view of DFCC is not affected by the merger because the ratings are already based on the consolidated credit profile.