Credit rating agency, India Ratings & Research has affirmed UCO Bank’s long-term issuer rating at ‘AA’. The Outlook is Stable. The rating agency has also affirmed the company’s Rs 250 crore lower Tier 2 subordinated bonds’ rating at ‘AA’, while the rating of the company’s Rs 500 crore upper Tier 2 subordinated bonds has been affirmed at ‘A-’.
The bank has received the said ratings on the back of government of India’s (GoI) support, given its lead-bank position in 34 districts spread over seven states, and share of system assets and deposits both at above 2%.
The bank’s capitalization is modest, with Tier 1 capital ratio at 9.06% at FYE13, adequate for the near-to-medium term to manage average loan growth.
