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Global rating agency Standard & Poor’s (S&P) today assigned ‘BBB-’ rating, indicating investment grade, to the IDBI Bank’s proposed bond issue.
The rating on the proposed issue reflects the “long-term counterparty credit rating” on the bank, S&P said in a statement.
“The proposed notes will constitute direct, unconditional, unsecured, and unsubordinated obligations of IDBI Bank,” it said.
Meanwhile, another global rating agency Moody’s has assigned a Baa3 rating to IDBI Bank’s proposed issuance of senior unsecured notes under its $1.5 billion Global Medium Term Note (GMTN) programme.
The long-term notes will be denominated in USD and issued by the Dubai International Financial Centre (DIFC) branch, Dubai of IDBI Bank, it said.
“We believe that the probability of systemic support for IDBI Bank is very high from the Indian government in an event of a systemic crisis,” Moody’s said.
The government has in the past supported Indian public sector banks, including IDBI Bank, by infusing equity and providing liquidity support when required, it added.
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