(The following statement was released by the rating agency)
SINGAPORE/MUMBAI, January 05 (Fitch) Fitch Ratings has assigned
of Baroda's (BOB) proposed US dollar-denominated senior
unsecured debt an
expected rating of 'BBB-(EXP)'.
The notes will constitute direct, unconditional, unsubordinated
obligations of the Issuer. They will at all times rank pari
themselves and with all other unsecured obligations (other than
obligations) of the Issuer. The tenor of the issue is expected
to be around five
years and the bank plans to use all the proceeds for offshore
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
Issuer Default Rating (IDR), in accordance with Fitch's
BOB's IDR (BBB-/Stable) is driven by its Support Rating Floor of
'BBB-' - which
is higher than its Viability Rating of 'bb+' - and reflects
that the government of India would continue to have a high
propensity to extend
support, should there be a need.
BOB's systemic importance is high given its position as India's
state-owned bank (55.4% state shareholding as at end-March
2013), high share of
system assets and deposits (around 6%) and wide-reaching
(over 4,000 branches). BOB, along with other state banks, has
regular capital injections from the government. Over the last
three years, it
has received total funds of around INR49.5bn from the government
Insurance Corporation of India, which is wholly owned by the
government and is
India's largest life insurer.
A change in BOB's IDR will have an impact on the securities'
BOB'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-'
- USD 3bn MTN Programme 'BBB-'
- USD 500mn Senior Unsecured Notes under the MTN programme
- USD 350mn Senior Unsecured Notes under the MTN programme
- USD 300mn Upper tier 2 Notes 'B+'
For more details on BOB's ratings and credit profile, see "Fitch
Action on Indian Banks", dated 23 September 2013, available at
+65 6796 7218
Fitch Ratings Singapore Pte Ltd.
6 Temasek Boulevard
#35-04/05 Suntec Tower 4
+91 22 4000 1741
Media Relations: Bindu Menon, Mumbai, Tel: +91 22 4000 1727,
email@example.com; Leslie Tan, Singapore, Tel: +65 67
96 7234, Email:
Additional information is available at www.fitchratings.com
Applicable criteria, 'Global Financial Institutions Rating
Criteria', dated 15
August 2012, are available at www.fitchratings.com
Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
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