Moody's rates IDBI Bank note program

Moody's Investors Service said it assigned foreign-currency ratings to the $1.5 billion medium-term note program of IDBI Bank Ltd. Any senior unsecured notes issued under this program will be assigned long-term foreign-currency ratings of Baa3, any lower tier 2 subordinated notes will be rated at Ba1, upper tier 2 subordinated notes at Ba2 and perpetual hybrid tier 1 notes at Ba3.

The ratings also incorporate the high likelihood of support from the government of India in the event of need, the agency said.

The rating also take into account its improving interest margins, profitability indicators and capitalization, Moody's said, but is constrained by significant borrowing and funding concentrations.

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