Moody’s downgrades IDBI baseline rating

Moody’s Investors Service said it confirmed IDBI Bank Ltd.’s Baa3/prime-3 global local-currency and foreign-currency bank deposit ratings.

Moody’s also said it downgraded the bank’s baseline credit assessment to B1 from Ba3.

Following the change in the baseline credit assessment, Moody’s said it downgraded the bank’s subordinated medium term notes program and the junior subordinated medium-term program to B1 and B2 from Ba3 and B1, respectively.

Moody’s also said it assigned a counterparty risk assessment of Baa3(cr)/P-3(cr) to the bank and its branches.

The agency said IDBI Bank’s standalone credit profile continues to be negatively impacted by its asset quality issues.

The bank’s impaired loan ratio rose to 14.7% at end March 2015 versus 12.16% a year earlier, Moody’s said.

In general, debt servicing metrics of Indian corporations remain weak, the agency added.

© 2015 Prospect News.
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