Moody’s upgrades ratings of Indian banks

On February 5, the International credit rating agency, Moody’s Investors Service, has upgraded the ratings of many banks and financial institutions.

 In its recent communiqué, Moody’s has upgraded the foreign currency bank deposit ratings of 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. Earlier, these banks have a Ba3 rating. Now, it is upgraded to Ba2 with negative outlook. 

In case of IDBI and PFC, foreign currency debt ratings are upgraded to Ba1 from Ba2. For the State Bank of India’s Resurgent Indian Bonds (RIB), the foreign currency debt rating is upgraded from Ba3 to Ba2 with negative outlook.  Regarding ICICI bank, Moody’s is still reviewing the foreign currency debt rating and the foreign currency subordinated debt rating. 

Moody’s expects a possible upgrade in the ratings once the review is completed. In case of IFCI, the foreign currency issuer rating is upgraded to Ba1 from Ba2.  All of these changes in ratings are subsequent to the upgradation of India's foreign currency deposit ceiling to Ba2 (negative outlook) from Ba3 and the debt ceiling to Ba1 from Ba2.