Fitch rates IDBI Bank bonds AA+(ind)

Fitch Ratings said it assigned an AA+(ind) rating to IDBI Bank Ltd.'s proposed Rs. 25 billion issuances of senior and lower tier 2 bonds.

The bank has a long-term foreign-currency issuer default rating of BBB-, short-term foreign-currency issuer default rating of F3, national long-term rating of AA+(ind), national short-term rating of F1+(ind) and national long-term deposit rating of tAAA(ind).

The outlook is stable.

The bank's Rs. 159.15 billion senior debt has an AA+(ind) rating, Rs. 49.08 billion lower tier 2 debt has an AA+(ind) rating, Rs. 3.5 billion upper tier 2 debt has an AA-(ind) rating and Rs. 160 billion certificate of deposit debt has an F1+(ind) rating.

The ratings reflect expectations of continued strong support from the government of India, given its position as India's eighth-largest commercial bank by assets with an increasing pan-India branch network, Fitch said.

The bank's plan of improving its funding profile is slowly but steadily bearing results, the agency said.

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