Fitch Rates DFCC’s Senior Debt at ‘AA-(EXP)(lka)’ | Daily News


 

Fitch Rates DFCC’s Senior Debt at ‘AA-(EXP)(lka)’

Fitch Ratings has assigned DFCC Bank PLC’s (AA-(lka)/Negative) proposed Sri Lanka rupee-denominated senior unsecured, unlisted debentures an expected National Long-Term Rating of ‘AA-(EXP)(lka)’.

The notes, which will total up to LKR5 billion, will mature in five years and carry fixed coupons. The bank plans to use the proceeds to support its loan expansion.

The final rating is subject to the receipt of final documentation conforming to information already received.

The senior unsecured debentures are rated at the same level as DFCC’s National Long- Term Rating in accordance with Fitch’s criteria.

This is because the issue ranks equally with the claims of the bank’s other senior unsecured creditors. DFCC’s National Long-Term Rating was affirmed on 22 January 2020 and is driven by its standalone credit profile, which is highly influenced by our view of its operating environment.

The Negative Outlook on DFCC’s National Long-Term Rating reflects our view that the

bank’s capital buffers may not be sufficient to counterbalance pressure from the weakening operating environment.


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