Fitch: IDBI Bank notes BBB-

Fitch Ratings said it assigned a rating of BBB- to IDBI Bank Ltd.'s $5 billion medium-term note program and various tranches of its outstanding senior unsecured notes a rating of BBB-.

Fitch also said it affirmed the bank's long-term issuer default rating at BBB-, viability rating at BB and short-term issuer default rating at F3, along with BBB- ratings on its $5 billion medium-term notes program, S$250 million senior unsecured notes, ¥650 million senior unsecured notes, CHF 110 million senior unsecured notes and $1.35 billion senior unsecured notes.

The outlook is stable and mirrors that of the Indian sovereign, Fitch said.

The ratings are based on an expectation that the government of India would continue to have a high propensity to extend the bank extraordinary support, should there be a need, the agency said.

This expectation is based on IDBI's systemic importance given its share in system assets and deposits, pan-India presence, the government's majority ownership of the bank and IDBI's role as a strategic shareholder in developing various key institutions, Fitch said.

The ratings also reflect in the bank's traditionally lower profitability than peers, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.