Fitch Assigns CBC Finance's Proposed Subordinated Debt 'BBB+(EXP)(lka)' Rating

Srilanka, Oct. 22 -- Fitch Ratings has assigned CBC Finance PLC's (CBCF, A(lka)/Stable) proposed Sri Lankan rupee-denominated subordinated listed debentures of up to LKR1 billion an expected National Long-Term Rating of 'BBB+(EXP)(lka)'.

The proposed debentures are likely to have a maturity of five years and are to be listed on the Colombo Stock Exchange. The company plans to use the proceeds to strengthen its Tier 2 capital base.

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

Key Rating Drivers

The proposed debentures are rated two notches below CBCF's National Long-Term Rating. This reflects our baseline notching for loss severity for this debt class and our expectation of...