Fitch rates Nations Trust Subordinated Debt ‘A-(lka)(EXP)’ | Daily News

Fitch rates Nations Trust Subordinated Debt ‘A-(lka)(EXP)’

Fitch Ratings has assigned Nations Trust Bank’s proposed Basel II-compliant subordinated debentures of up to Rs 5 bn an expected National Long-Term Rating of ‘A-(lka)(EXP)’.

The proposed debentures will mature in five years and carry fixed and floating coupons. The debentures are to be listed on the Colombo Stock Exchange. NTB plans to use the proceeds to support its Tier 2 capital base, diversify its funding mix and reduce structural maturity mismatches.

The final rating is subject to the receipt of final documentation conforming to information already received.The proposed subordinated debentures are rated one notch below NTB’s National Long-Term Rating to reflect the subordination to senior unsecured creditors.

NTB’s ratings reflect its expanding franchise, improved efficiency and its high and increasing exposure to products and customer segments that are more susceptible to economic cycles. The Outlook is Stable. 

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