Moody's downgrades IDBI Bank

Moody's Investors Service said it downgraded IDBI Bank Ltd.'s local- and foreign-currency bank deposit ratings to Ba2/not-prime from Baa3/prime-3.

Moody's also said it downgraded the bank and its branch, IDBI Bank Ltd., DIFC Branch's senior unsecured debt and senior unsecured medium-term note program ratings to Ba2 from Baa3.

The agency also said it downgraded the bank's baseline credit assessment and adjusted baseline credit assessment to Caa1 from B1.

Moody's also said it downgraded the counterparty risk assessment to Ba1(cr)/not-prime(cr) from Baa3(cr)/P-3(cr) for both the bank and DIFC Branch.

The downgrades reflect the significant deterioration in IDBI's financial profile, driven by asset quality issues and the heightened risk to its solvency position, the agency said.

Its capitalization position is extremely weak, Moody's added.

Over the next 12- to 18-months, the agency said it expects asset quality issues to persist, which will put pressure on the bank's profitability profile and limit its ability to generate internal capital.

© 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.