Fitch explains view on IndusInd Bank

Fitch Ratings said in a clarification on reports related to the rating and outlook of IndusInd Bank Ltd. (IBL) that on Feb. 10 it Fitch affirmed the national A+(ind) rating of IBL's subordinated debt programs, while revising the outlook on the rating to stable from positive.

The national short-term rating of the bank's certificates of deposit program had also been affirmed at F1+(ind).

A stable outlook designation is a forward-looking view of the likely direction of the credit rating during the next 12 to 24 months and Fitch said it therefore confirms that it has neither downgraded nor is it contemplating a downgrade of IBL at this time.

As previously stated, the revision in outlook to stable follows a possible reduction in IBL's capital ratios on account of the recent guidelines issued by Reserve Bank of India regarding capital charges on credit enhancements provided by originators of securitization transactions, Fitch said.

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