Srilanka, Oct. 6 -- Fitch Ratings has assigned Merchant Bank of Sri Lanka & Finance PLC's (MBSL, 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 will mature in five years and will be listed on the Colombo Stock Exchange. The company plans to use the proceeds to comply with regulatory capital adequacy requirements.

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 MBSL's National Long-Term Rating. This reflects our baseline notching for loss severity for this debt cla...