Moody's rates Indian Overseas notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to Indian Overseas Bank's proposed dollar-denominated senior notes drawdown from its $1 billion medium-term note program through its Hong Kong branch.

The outlook is stable.

Moody's said the Baa3 rating is underpinned by Indian Overseas Bank's: (a) moderate franchise with dominance in Tamil Nadu, the southern part of India, and a 3% share in system deposits; (b) average financial fundamentals, including asset quality, capital levels and profitability ratios, which are in line with other Indian mid-sized public-sector banks; and (c) close relationship with the government of India, via the latter's 69.62% holding, and as evidenced by repeated capital infusions into the bank.

© 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.