India Ratings & Research (Ind-Ra) has affirmed ‘AA+/ Negative’ rating/ outlook in respect of IDFC First Bank’s 'Basel III - Tier 2 Debt' of Rs 2,000 crore (Size of Issue) and other Debt Instruments (Infra Bonds and NCDs).
The negative outlook reflects Ind-Ra’s expectation of challenges on IDFCFB’s asset quality and the resultant increased credit costs due to the measures taken in the wake of COVID-19 pandemic, such as the Reserve Bank of India-prescribed moratorium, coupled with a weak operating performance and moderately-diversified liability profile compared to peers. The ratings, however, factor in the bank’s strengthening franchise with increasing proportion of granular loans offering strong pricing power, adequate capital buffers and experienced management.
IDFC First Bank provides a range of financial solutions to individuals, small businesses and corporates.
