Fitch: IDBI Bank notes BBB-

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

The notes will constitute direct, unconditional, unsubordinated and unsecured obligations of the issuer. They will rank pari passu with all other unsubordinated and unsecured obligations of IDBI Bank, Fitch said.

The tenor of the issue is expected to be about three to five years and the notes are to be issued by IDBI Bank’s Dubai International Financial Centre branch, the agency said.

The senior unsecured instruments are rated at the same level as the bank’s issuer default rating, Fitch said.

The ratings are driven by an expectation of a high probability of extraordinary support from the government of India, if necessary, the agency said.

The bank’s systemic importance is high, which is driven by its relatively large size and asset share, the government’s 76.5% stake and its role as a strategic shareholder in setting up vital financial institutions and policy banks, Fitch said.

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