CARE revises rating of Lower Tier II bonds and Upper Tier II bonds of CBI

Credit rating agency, CARE has revised rating of Rs 1,437 crore Lower Tier II Bonds of Central Bank of India (CBI) to ‘AA’ from ‘AA+’. The rating agency has revised rating of Rs 2,285 crore Upper Tier II Bonds of the bank to ‘AA-’ from ‘AA’.

The rating agency has also reaffirmed the assigned ‘A1+’ rating  to Certificate of Deposit Programme of the bank  for Rs 30,000 crore.

The said rating revision takes into account the sharp deterioration in asset quality, high level of restructured assets and decline in profitability parameters. The rating also factors in the majority ownership and capital support by the Government of India (GoI), extensive branch network and comfortable CASA base.