Fitch revises rating outlook for 9 banks

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Fitch Ratings on Wednesday revised its rating outlook from negative for nine India-based banks, including SBI, ICICI Bank and Axis Bank.
The other lenders are Bank of Baroda (BOB), Bank of Baroda (New Zealand) Ltd, Bank of India, Canara Bank, Punjab National Bank (PNB) and Union Bank of India.

“Fitch Ratings has revised its outlook from negative on the Long-Term Issuer Default Ratings (IDR) of 9 Indian-based banks as they confirm their IDRs,” Fitch said in a statement.

The IDRs are based on Fitch’s assessment of the high to moderate probability of extraordinary state support for these banks, taking into account its assessment of the sovereign’s ability and propensity to provide exceptional support.

It takes into account the government’s consistent track record in supporting systemically important banks, the relative systemic importance of the lenders and their different ownership, Fitch said.

Separately, Fitch also revised the Export-Import Bank of India (EXIM) long-term IDR outlook from negative to stable.

These rating actions follow Fitch’s revision of last week’s outlook for India’s “BBB-” rating from negative to stable due to reduced downside risks to the country’s medium-term growth, underlined by the rapid economic recovery and the diminishing weaknesses in the financial sector .





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