Financial Daily from THE HINDU group of publications
Thursday, Feb 06, 2003
Financial Daily from THE HINDU group of publications Thursday, Feb 06, 2003 |
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Credit Rating Money & Banking - Financial Institutions Moody's upgrades ratings for 11 banks, FIs Our Bureau
MUMBAI, Feb. 5 MOODY'S Investor Service on Wednesday upgraded the foreign currency deposit, debt and issuer ratings for 11 Indian banks and financial institutions. Earlier this week, it had upgraded India's foreign currency debt rating. The international rating agency has upgraded the foreign currency bank deposit ratings to Ba2 with negative outlook from Ba3 for Bank of Baroda, Bank of India, Canara Bank, Central Bank of India, ICICI Bank Ltd, Oriental Bank of Commerce, Punjab National Bank, State Bank of India and Union Bank of India. It upgraded the foreign currency debt ratings of Industrial Development Bank of India and Power Finance Corporation to Ba1 from Ba2. The foreign currency debt rating of State Bank of India's Resurgent Indian Bonds has been upgraded to Ba2 with negative outlook from Ba3. The foreign currency debt rating of ICICI Bank is on review for a possible upgrade. The review will be based on the progress on the reverse merger between ICICI Bank and ICICI Ltd. The foreign currency subordinated debt rating for ICICI Bank remains on review for possible upgrade. The foreign currency issuer rating for IFCI has been upgraded to Ba1 from Ba2. The ratings have been raised to the corresponding rating ceilings for foreign currency deposits, debt and issuer ratings in India, with the exception of State Bank of India's foreign currency debt rating that refers to the Resurgent India Bonds. According to Moody's, this rating is at the same level as its deposit rating since these bonds have more "deposit than debt characteristics". Although the deposit ratings of some banks are constrained by the country ratings ceilings, other weaker public sector institutions are pulled to the ceiling based on support from the Government, Moody's said. The foreign currency deposit ratings of Central Bank of India and Union Bank of India, the debt rating of IDBI and the issuer rating of IFCI all impute Government support. "This is based on our belief that the Government maintains its willingness to support the foreign currency obligations of the banks and financial institutions in case of need," Moody's said in a release.
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