(The following statement was released by the rating agency)
MUMBAI/SINGAPORE, July 08 (Fitch) Fitch Ratings has assigned
India-based Bank 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 unsubordinated and unsecured
than subordinated obligations) of BOB. The tenor of the issue is
expected to be
around five years and the bank plans to use all the proceeds for
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
extraordinary support, should there be a need.
BOB's systemic importance is high given its position as India's
state-owned bank (56.3% state shareholding as at end-March
2014), high share of
system assets and deposits (around 6%) and wide-reaching
(close to 5,000 branches). BOB, along with other state banks,
has also received
regular capital injections from the government. Between
FY10-FY14, it received
total funds of around INR55bn (USD 920m) from the government and
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 not affected and 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 medium-term note (MTN) programme 'BBB-'
USD 500m senior unsecured notes under the MTN programme 'BBB-'
USD 350m senior unsecured notes under the MTN programme 'BBB-'
USD 750m senior unsecured notes under the MTN programme 'BBB-'
USD300m Upper Tier 2 notes 'B+'
For more details on BOB's ratings and credit profile, see full
'Bank of Baroda', dated 15 April 2014, available at
+65 6796 7218
Fitch Ratings Singapore Pte Ltd.
6 Temasek Boulevard
#35-04/05 Suntec Tower 4
+91 22 4000 1741
+65 6796 7229
Media Relations: Bindu Menon, Mumbai, Tel: +91 22 4000 1727,
firstname.lastname@example.org; Leslie Tan, Singapore, Tel: +65 67
96 7234, Email:
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
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