Fitch Ratings has assigned
The final rating is the same as the expected rating assigned on
The proposed debentures will mature in five and seven years and will be listed on the
Key Rating Drivers
DFCC's Sri Lankan rupee-denominated subordinated debt is rated two notches below the bank's National Long-Term Rating anchor. This reflects Fitch's baseline notching for loss severity for this type of debt and expectation of poor recoveries. There is no additional notching for non-performance risk, as the notes do not incorporate going-concern loss-absorption features.
DFCC's National Long-Term Rating is used as the anchor rating for this instrument because it reflects the bank's standalone financial strength and best indicates the risk of the bank becoming non-viable.
For further details of the key rating drivers and rating sensitivities for DFCC, see the rating action commentary published on
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
DFCC's subordinated debt would be downgraded if the bank's National Long-Term Rating is downgraded.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
DFCC's subordinated debt would be upgraded if the bank's National Long-Term Rating is upgraded.
Date of Relevant Committee
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
RATING ACTIONS
Entity / Debt
Rating
Prior
subordinated
Natl LT
BBB(lka)
New Rating
BBB(EXP)(lka)
Page
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VIEW ADDITIONAL RATING DETAILS
Additional information is available on www.fitchratings.com
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