Credit rating agency, CRISIL has assigned its ‘AAA/Stable’ rating to the Rs 1500 crore Tier II bonds issue (under Basel III) of Bank of India (BoI). The rating agency has also reaffirmed its ratings on the bank’s existing debt instruments at ‘AAA/Stable/CRISIL A1+’.
The company has received the said ratings on the back of strong support from the Government of India (GoI), the bank’s majority shareholder, both on an ongoing basis and in the event of any distress. The ratings also factor in the bank’s adequate capitalisation, comfortable resource profile, and established market position. These rating strengths are partially offset by the bank’s average asset quality and earnings profile.
