Fitch Rates IDBI Bank's Proposed Senior Unsecured Debt 'BBB-(EXP)'

Tue Mar 18, 2014 10:45pm EDT

Related Topics

(The following statement was released by the rating agency) SINGAPORE/MUMBAI, March 18 (Fitch) Fitch Ratings has assigned India-based IDBI Bank Ltd's (IDBI Bank; BBB-/Stable) proposed US dollar-denominated senior unsecured debt an expected rating of 'BBB-(EXP)'. The notes will be issued out of the bank's Dubai branch and the bank plans to use all the proceeds for offshore lending activities. The final rating is subject to the receipt of final documentation conforming to information already received. KEY RATING DRIVERS The senior unsecured instruments are rated at the same level as the bank's Issuer Default Rating (IDR) because they will constitute direct, unconditional, unsubordinated and unsecured obligations of IDBI Bank. The securities will rank pari passu among themselves and with all other unsecured obligations (other than subordinated obligations) of the bank. IDBI Bank's IDR is driven by its Support Rating Floor of 'BBB-', which is higher than its Viability Rating of 'bb', and reflects Fitch's expectation that the government of India would continue to have a high propensity to extend support to the bank, should there be a need. RATING SENSITIVITIES A change in IDBI Bank's IDR will have an impact on the securities' rating. A change in the IDR would be sensitive to a reassessment of the likelihood of support or a change in the sovereign rating. IDBI Bank's other ratings are as follows: Long-Term IDR 'BBB-'; Outlook Stable Short-Term IDR 'F3' Viability Rating 'bb' Support Rating '2' Support Rating Floor 'BBB-' USD5bn medium-term note programme 'BBB-' SGD250m senior unsecured notes 'BBB-' CNY650m senior unsecured notes 'BBB-' CHF110m senior unsecured notes 'BBB-' USD1.35bn senior unsecured notes 'BBB-' For more details on IDBI Bank's ratings and credit profile, see "Fitch Takes Rating Action on Indian Banks", dated 23 September 2013 and "Fitch Rates IDBI Bank's MTN Programme and Senior Debt 'BBB-'", dated 16 December 2013, available at www.fitchratings.com. Contact: Primary Analyst Ambreesh Srivastava Senior Director +65 6796 7218 Fitch Ratings Singapore Pte Ltd. 6 Temasek Boulevard #35-04/05 Suntec Tower 4 Singapore Secondary Analyst Saswata Guha Director +91 22 4000 1741 Media Relations: Bindu Menon, Mumbai, Tel: +91 22 4000 1727, Email: bindu.menon@fitchratings.com; Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com. Additional information is available on www.fitchratings.com Applicable criteria, "Global Financial Institutions Rating Criteria", dated 31 January 2014, are available at www.fitchratings.com. Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria here Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

FILED UNDER: