Fitch Ratings Lanka has assigned Bank of Ceylon's proposed subordinated debentures of up to Rs 8bn an expected National Long-Term Rating of 'AA(lka)(EXP)'.

The debentures, which have tenors of five and eight years and carry fixed and floating coupons, are to be listed on the Colombo Stock Exchange. BOC expects to use the proceeds to strengthen the bank's regulatory Tier 2 capital base and reduce asset and liability maturity mismatches.

BOC's National Long-Term Rating reflects the government of Sri Lanka's (BB-/Stable) high propensity but moderate ability to provide support to the bank under extraordinary situations.