Fitch downgrades IDBI Bank

Fitch Ratings said it downgraded IDBI Bank Ltd.'s long-term issuer default rating to BB+ from BBB- and its viability rating to CCC from BB-.

The outlook is stable.

IDBI Bank's issuer default rating and senior debt ratings were downgraded due to a downward revision in its support rating to BB+ from BBB-.

The bank's support rating is rated higher than its viability rating and remains the primary driver for its issuer default rating, Fitch said.

This follows a reassessment of Fitch's support assumptions, given the bank's ongoing challenges, which are leading to an erosion of its systemic importance, particularly as shareholder capital support has been kept to a minimum, the agency said.

The viability rating was downgraded due to a sharper-than-expected deterioration in the bank's financial profile, Fitch said.

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