Sun, 01 Aug 2021 Today's Paper

Fitch rates LB Finance’s senior and subordinated debt

20 September 2017 11:13 am - 0     - {{hitsCtrl.values.hits}}

A A A

Fitch Ratings has assigned LB Finance PLC’s (LB; A-(lka)/Stable) proposed senior, unsecured and subordinated debentures expected national long-term ratings of ‘A-(lka)(EXP)’ and ‘BBB+(lka)(EXP)’, respectively.


The issuance is to total Rs.3 billion, with the debentures to mature in five years and carry fixed coupons. The debentures are to be listed on the Colombo Stock Exchange. LB expects to use the proceeds to fund loan book growth, reduce asset and liability maturity mismatches and to improve its Tier II capital base.


The final ratings on the debentures are subject to the receipt of final documentation conforming to information already received.


The proposed senior debentures are rated at the same level as LB’s national long-term rating as they constitute unsecured and unsubordinated obligations of the company. The proposed subordinated debentures are rated one notch below its national long-term rating to reflect the subordination to its senior unsecured obligations.


The rating of LB captures its established franchise and satisfactory levels of capital, which are supported by sound profitability through its higher-yielding products. These are counterbalanced by its relatively higher risk appetite as seen from its exposure to gold-backed lending. The rating also reflects increasing liquidity risk, which could reduce its liquidity buffer.

See Kapruka's top selling online shopping categories such as Toys, 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.

  Comments - 0

See Kapruka's top selling online shopping categories such as Toys, 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.

 


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


Ugly sporting truths Sport scholarships thrive in culture of corruption

Sadly the cohort of perpetrators include egotistical leaders, coaches and eve

JR Jayewardene and the July 1983 Anti-Tamil Violence

July 24, 1983 was the day on which a destructive spree of anti-Tamil violence

“Medamulana Dynasty”: Four Sons and Three Grandsons of Don Alvin Rajapaksa

Basil Rohana Rajapaksa was sworn in as Finance minister in the Government of

Site survey near Akasa Chaitya: Is it the end of Yala?

The Yala National Park has been at the receiving end of human disturbances fr



See Kapruka's top selling online shopping categories such as Toys, 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.