Credit rating agency, Moody’s Investors Service has downgraded IDBI Bank’s local and foreign currency bank deposit ratings to ‘Ba2’ from ‘Baa3’. This and other rating actions reflect the significant deterioration in IDBI Bank’s financial profile, driven by asset quality issues and the heightened risk to its solvency position.
The rating agency has also downgraded the Bank’s Dubai International Financial Centre (DIFC) branch’s senior unsecured debt and senior unsecured medium-term note (MTN) programme ratings to Ba2/(P)Ba2 from Baa3/(P)Baa3, respectively.
At the same time, it also downgraded the lender’s baseline credit assessment (BCA) and Adjusted BCA to caa1 from b1. Following the change in BCA, Moody’s downgraded the Bank’s and its DIFC branch’s subordinated MTN programme and junior subordinated MTN programme to (P)Caa1/(P)Caa2 from (P)B1/(P)B2, respectively.
