Fri, 01 Jul 2022 Today's Paper

Fitch Rates NTB’s Basel III sub-debt issue ‘A-(lka) (EXP)’

17 October 2017 12:21 am - 0     - {{hitsCtrl.values.hits}}

A A A

Fitch Ratings has assigned Nations Trust Bank PLC’s (NTB, A(lka)/Stable) Sri Lanka rupee-denominated proposed Basel III-compliant subordinated unsecured debentures an expected National Long-Term Rating of ‘A-(lka)(EXP)’.


The debentures, totalling LKR3.5 billion, will have maturities of five years and carry fixed coupons. The debentures qualify as regulatory Tier II capital for the bank and include a non-viability clause.


The bank plans to use the proceeds to support its loan book expansion and to strengthen its Tier II capital base. The debentures are to be listed on the Colombo Stock Exchange.


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


Fitch rates the proposed Basel III Tier II notes one notch below the bank’s National Long-Term Rating of ‘A(lka)’. This reflects the notes’ higher loss-severity risks compared with senior unsecured instruments due to the notes’ subordinated status.


The notes include a non-viability trigger that would convert the notes to equity upon the occurrence of a trigger event, as determined by the Monetary Board of Sri Lanka.
NTB’s National Long-Term Rating is used as the anchor rating because the rating reflects the bank’s standalone financial strength. Fitch believes that the bank’s standalone credit profile best indicates the risk of becoming non-viable.


Fitch has not differentiated the notching on the proposed notes from the notching on NTB’s legacy Tier II notes as it is assumed that the authorities would step in late, moving the point of non-viability close to liquidation.


Fitch has not applied additional notching to the notes for non-performance risk according to Fitch’s criteria, as the notes have no going-concern loss-absorption features.


NTB’s ratings reflect its declining capitalisation, modest franchise and high product concentration.


The rating of the notes would move in tandem with NTB’s National Long-Term Rating.

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.

  Comments - 0

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.


Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.


Free-fall of the nation Where is the alternative to ruinous Gotabaya regime?

There is a great deal of ruin in a nation, Adam Smith once said - meaning tha

Gotabaya, Ranil and the Frog and Scorpion Fable

Let me rewind back to my boyhood when I first read the fable about the scorpi

Four-day work week: Can Govt. reap what it sows?

This week, Sri Lanka joined a growing list of countries experimenting with th

Sri Lanka’s Al Capone Syndrome threatens human security

Be it Al Capone, Pablo Escobar, El Chapo or any other crime boss, violence in