Fitch lifts some Indian banks

Fitch Ratings said it upgraded the support ratings of five Indian government-owned banks, Corporation Bank, Indian Bank, Andhra Bank, Vijaya Bank and Dena Bank, to 3 from 4.

The agency also upgraded Dena Bank's national long-term rating and Rs. 4.5 billion lower tier 2 subordinated bonds to AA-(ind) from A+(ind). Its outlook is stable.

In addition, Oriental Bank of Commerce's support rating floor was upgraded to BB+ from BB-.

The upgrades reflect the Indian government's continued strong propensity and commitment toward maintaining healthy financial profiles for government-owned banks and the government's improved ability to do this based on better prospects for its fiscal position, Fitch said.

The support ratings of some other Fitch-rated government banks are already at 2, the highest level for Indian banks, or 3, based on the agency's view of their relative importance to India's financial system. The minimum support rating floor for a government bank is now BB on Fitch's international rating scale and AA-(ind) on the national rating scale.

© 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.