Moody’s rates Bank of India notes Baa3

Moody’s Investors Service said it assigned a Baa3 rating to Bank of India’s proposed dollar-denominated senior unsecured notes issued under its updated $5 billion medium-term note program.

The bonds will have a maturity of 5 years and will be listed on the Singapore Stock Exchange, Moody’s said.

The outlook is positive.

The rating on the notes reflects the bank’s Ba2 baseline credit assessment and the very high likelihood of systemic support from the Indian government in a stressed situation, the agency said.

The ratings consider the asset quality pressures that the bank faces, positioning it unfavorably against similarly-rated regional and global peers, Moody’s said.

The bank has comparatively low provisioning levels amid a challenging operating environment, the agency added.

The ratings are supported by the bank’s strong domestic franchise, comfortable liquidity and stable funding profile, Moody’s said.

© 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.