Moody’s takes rating actions on 11 Indian financial institutions after change in sovereign outlook

Moody's Investors Service on Friday revised its outlook of six Indian financial institutions (FIs) to negative from stable.

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Moody's takes rating actions on 11 Indian financial institutions after change in sovereign outlook

Singapore, Nov 8 : Moody’s Investors Service on Friday revised its outlook of six Indian financial institutions (FIs) to negative from stable.

The affected FIs are Exim India, HDFC Bank, Hero FinCorp, Housing and Urban Development Corporation, Indian Railway Finance Corporation and State Bank of India. The rating outlooks for Bank of India, Canara Bank, Syndicate Bank and Union Bank of India are maintained at stable. The rating actions follow the affirmation of India’s Baa2 sovereign rating, and the change in the outlook to negative from stable a day earlier.

Separately, Moody’s downgraded the long-term counterparty risk assessment and long-term local currency counterparty risk rating of HDFC Bank’s Bahrain branch and ICICI Bank’s Bahrain Branch to Ba2(cr) from Ba1(cr) and Ba2 from Ba1 to align these ratings with Bahrain’s local currency ceilings.

Also for ICICI Bank Bahrain Branch, Moody’s downgraded the long-term foreign currency senior unsecured medium-term note programme rating and subordinate medium-term note programme rating to (P)Ba3 from (P)Ba2 to align these ratings with Bahrain’s foreign currency bond ceiling. There are currently no outstanding bonds issued out of the Bahrain branch, Moody’s said in a statement.