Fitch Expects to Rate Bancolombia's Planned Issue of Sub Notes 'BB'.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has today assigned an expected rating of 'BB' to the planned US$400 million of subordinated notes to be issued by Bancolombia. The rating is contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent receipt of final documents conforming to information already received. The rating is one notch below Bancolombia's long-term foreign currency Issuer Default Rating (IDR IDR In currencies, this is the abbreviation for the Indonesian Rupiah. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) of 'BB+', affirmed on May 2, 2007. The unsecured subordinated notes will mature in 2017, will accrue interest at a fixed rate and principal will be fully paid in a single, bullet payment at maturity. The notes will be subordinated in right of payment to all of Bancolombia's existing and future senior obligations. In the event of Bancolombia's bankruptcy, liquidation or dissolution under Colombian law, the notes will rank at least pari-passu in right of payment with all of Bancolombia's future subordinated indebtedness and will be senior in right of payment only to the holders of all classes of Bancolombia's share capital. The notes may not be redeemed prior to maturity and interest can not be deferred by Bancolombia hence, these notes are fully considered debt-like under Fitch's capital assessment criteria (Class A - 0% equity credit). There is no right of acceleration for the notes holders unless changes in Colombian banking laws affect their eligibility for regulatory Tier II capital consideration in Colombia and, such acceleration does not conflict with prevailing Colombian banking laws. The notes are being issued by Bancolombia as subordinated notes under the laws of Colombia and will be governed by the law of New York. The notes are considered debt instruments by Colombian and New York legislations; they are not covered not covered Health care adjective Referring to a procedure, test or other health service to which a policy holder or insurance beneficiary is not entitled under the terms of the policy or payment system–eg, Medicare. Cf Covered. by any type of deposit insurance. Bancolombia is Colombia's largest bank with around 20% of the system's loans and deposits at March 2007; it has assets of about US$16.6 billion and equity of about US$1.6 billion. It is the result of several mergers including the one between Bancolombia, Corfinsura and Conavi in 2005. Bancolombia will complete the acquisition of Banco Agricola in May 2007. The bank is controlled by a conglomerate of companies informally known as Grupo Empresarial Antioqueno and is widely active in corporate, SME (1) (Small and Medium-sized Enterprise) See SMB. (2) (Subject Matter Expert) An individual who is well-versed in the policies and procedures of a particular department or division. and retail markets. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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