Credit rating agency Fitch Ratings on Wednesday announced the revision of the Outlook on the ‘BBB-’ Long-Term (LT) Foreign Currency (FC) Issuer Default Rating (IDR) of 11 Indian financial institutions to negative from stable, while affirming the rating.
These include six government banks (including an international banking subsidiary of a government bank), two private banks, two wholly owned government institutions and one infrastructure finance company.
A list of affected entities is as follows:- State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BOB), Bank of Baroda (New Zealand) Limited (BOBNZ), Canara Bank (Canara), IDBI Bank Ltd. (IDBI), ICICI Bank Ltd. (ICICI), Axis Bank (Axis), Export-Import Bank of India (EXIM), Housing and Urban Development Corporation Ltd. (HUDCO), Infrastructure Development Finance Company Ltd. (IDFC).
The rating action follows Fitch’s revision of the Outlook on India’s LT Foreign- and Local-Currency IDRs to negative from stable Monday.
The Outlook revision of the financial institutions reflects their close linkages with the sovereign by virtue of their high exposure to domestic counterparties and holdings of domestic sovereign debt, Fitch said.