Fitch affirms and withdraws rating on BOC’s proposed debt issue

Fitch Ratings has affirmed and withdrawn the rating on Bank of Ceylon’s (BOC) proposed Basel III-compliant subordinated debenture issue, as the issuance has not taken place.

BOC in July revealed plans to raise as much as Rs.12 billion through a private placement of subordinated debentures to beef up its capital base to meet the regulatory requirements stipulated under the Basel III accord.

To this end, BOC said it planned to issue 120 million subordinated debentures at Rs.100 each with five-year and eight-year tenures.

Fitch had affirmed the debentures at ‘AA(lka)’.

Meanwhile, Fitch yesterday affirmed BOC’s National Long-Term Rating at ‘AA+(lka) and Long-Term Issuer Default Rating (IDR) at ‘B’ with a Stable Outlook.