Fitch Rates IDBI Bank's USD300m Senior Unsecured Debt Final 'BBB-'

Fri Mar 21, 2014 2:04am EDT

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(The following statement was released by the rating agency) SINGAPORE/MUMBAI, March 21 (Fitch) Fitch Ratings has assigned India-based IDBI Bank Ltd's (IDBI Bank; BBB-/Stable) USD300m senior unsecured notes due September 2019 a final rating of 'BBB-'. This follows the completion of the securities issue and the receipt of final documents conforming to information previously received. The final rating is the same as the expected rating assigned on 19 March 2014. The notes, issued by the bank's Dubai branch, will be listed on the Singapore exchange. 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.

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