Fitch rates ComBank’s subordinated debentures final ‘AA-(lka)’

Fitch Ratings Lanka has assigned Commercial Bank of Ceylon PLC’s (AA(lka)/Stable) proposed Basel II-compliant subordinated debentures of up to Rs.7 billion a final national long-term rating of ‘AA-(lka)’.

The final rating is the same as the expected rating assigned on December 22, 2015 and follows the receipt of documents conforming to information already received.

The proposed issuance, which will have tenures of five and 10 years and carry fixed coupons, will be listed on the Colombo Stock Exchange. Commercial Bank expects to use the proceeds to strengthen its Tier II capital base and reduce asset-and-liability maturity mismatches.