Fitch: IDBI Bank notes BBB-

Fitch Ratings said it assigned an expected rating of BBB- to IDBI Bank Ltd.'s proposed dollar-denominated senior unsecured debt.

The notes will be issued out of the bank's Dubai branch and the bank plans to use all the proceeds for offshore lending activities, the agency said.

The senior unsecured instruments are rated at the same level as the bank's issuer default rating because they will constitute direct, unconditional, unsubordinated and unsecured obligations of IDBI Bank, Fitch said.

The securities will rank pari passu among themselves and with all other unsecured obligations of the bank, the agency said.

The bank also has a long-term issuer default rating of BBB-, short-term issuer default rating of F3 and viability rating of BB, along with BBB- ratings on its $5 billion medium-term note 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.

IDBI Bank's issuer default rating is driven by an expectation that the government of India will continue to have a high propensity to extend support to the bank, should there be a need, Fitch said.

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