Fitch Ratings Lanka has assigned Hatton National Bank PLC's (HNB; AA-(lka)/Stable) proposed senior debentures of up to LKR6bn an expected National Long-Term Rating of 'AA-(lka)(EXP)'.

The debentures, which are to have tenors of three, five and 10 years and carry fixed coupons, are to be listed on the Colombo Stock Exchange. HNB expects to use the proceeds to reduce asset and liability maturity mismatches.

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

 KEY RATING DRIVERS

HNB's rating reflects its long operating history, strong franchise, satisfactory capitalisation and relatively higher risk appetite.

The proposed debentures are rated at the same level as HNB's National Long-Term Rating in accordance with Fitch's criteria as they constitute unsecured and unsubordinated obligations of the bank.

RATING SENSITIVITIES

The ratings on the proposed debentures will move in tandem with HNB's National Long-Term Rating.

A full list of HNB's ratings follows:

National Long-Term Rating: 'AA-(lka)'; Stable Outlook

Outstanding Sri Lanka rupee-denominated senior unsecured debentures: 'AA-(lka)'

Proposed Sri Lanka rupee-denominated senior unsecured debentures: 'AA-(lka)(EXP)'

Outstanding subordinated debentures: 'A+(lka)'