Fitch revises long-term Issuer Default Ratings Outlook of 9 banks

16 Jun 2022 , 11:01 AM

Fitch Ratings has revised the outlook on the Long-Term Issuer Default Ratings (IDR) of 9 banks from ‘Negative’ to ‘Stable’.

The rating agency has revised the outlook of banks namely, State Bank of India (SBI), Bank of Baroda (New Zealand) Limited (BOBNZ), Canara Bank (Canara), Bank of Baroda (BOB), Bank of India (BOI), Punjab National Bank (PNB), Axis Bank Limited (Axis), ICICI Bank Limited (ICICI).

Fitch has also confirmed the Government Support Ratings (GSRs) for seven of these banks. It further reaffirmed the Shareholder Support Rating (SSR) on Bank of Baroda (New Zealand) Limited.

The rating agency has also revised the Outlook on Union Bank of India’s IDR to ‘Stable’ from ‘Negative’ while affirming its IDR. It has assigned a ‘BBB-’ Government Support Rating to Bank’s instruments, at par with the updated Bank rating criteria.

Fitch further stated that it has withdrawn UBI’s Support Rating Floor as they are no longer relevant to the agency’s coverage following its updated publication on Bank rating criteria.

The rating action by Fitch follows the revision in rating on the Indian sovereign to Stable from Negative on 10 June 2022 due to diminished downside risks to India’s medium-term growth, which is underscored by its rapid economic recovery and easing financial-sector weaknesses, stated media reports.