Moody’s rates IDBI Bank notes Baa3

Moody’s Investors Service said it assigned a Baa3 rating to IDBI Bank Ltd.’s proposed dollar-denominated senior unsecured notes issued under its $5 billion global medium-term note program.

The drawdown will be carried out from its Dubai International Financial Centre (DIFC) branch, Moody’s said, and the net proceeds will be used for eligible green projects under IDBI’s green bond framework.

The bonds will be listed on the Singapore Stock Exchange.

The outlook is stable.

The Baa3 foreign-currency senior unsecured medium-term debt rating is anchored on IDBI’s B1 baseline credit assessment, Moody’s said.

IDBI’s ratings are underpinned by its weak asset quality and poor internal capital generation capability, the agency said.

Moody’s also said the ratings consider the challenging domestic operating environment, which could lead to a further deterioration in the asset quality.

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