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Moody’s Downgrades IDBI Bank’s FCD Rating
August 31, 2017
This Tuesday, global credit rating firm Moody’s downgraded IDBI Bank’s local and foreign currency bank deposit ratings from Ba2 to B1. It said that the revision has to do with the reduced support that the bank is now receiving from the government.
Moody’s has also lowered the foreign currency senior unsecured rating of the IDBI Bank along with its Dubai International Financial Centre (DIFC) branch to from Ba2 to B1.
Although, IDBI received Rs. 1,860 crore of fresh equity from the government and Rs. 390 crore equity from the Life Insurance Corporation of India (LIC) this year, Moody’s said that IDBI is still undercapitalized with a CET 1 ratio of mere 6.5%.
