Sri Lanka Union Bank’s Rs3bn debt issue gets preliminary ‘BB’ rating from Fitch

ECONOMYNEXT – Fitch Ratings has assigned Union Bank’s proposed Sri Lanka rupee-denominated Basel III-compliant debentures of up to 3 billion rupees an expected National Long-Term Rating of ‘BB(EXP)(lka)’. “Fitch rates the proposed Basel III Tier 2 notes two notches below the bank’s National Long-Term Rating to reflect Fitch’s baseline notching for loss severity for this type of debt and expectation of poor recoveries,” the ratings agency said. The final rating is subject to the receipt of final documentation conforming to information already received. The full statement is reproduced below: Fitch Assigns Union Bank’s Proposed Basel III Subordinated Debt ‘BB(EXP)(lka)’ Fitch…

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