ADVERTISEMENTREMOVE AD

Moody’s Raises Outlook for 15 Banks, FIs to Positive

Moody’s raises outlook for 15 banks, FIs to ‘positive’

Published
Business
1 min read
story-hero-img
i
Aa
Aa
Small
Aa
Medium
Aa
Large
Hindi Female

Credit rating agency Moody’s on Thursday revised upwards the outlook to positive, from stable, for 12 state-owned banks and financial institutions including SBI, PNB, Canara Bank, REC and PFC.

Moody’s also revised to positive the outlook on the long- term ratings of private sector lenders -- ICICI Bank, HDFC Bank and Axis Bank.

We have affirmed the long-term ratings and changed the outlook to positive from stable for 12 Indian government- owned financial institutions.
– Moody’s said. 

“The rating actions (on 12 public-sector entities) are in line with our affirmation of India’s Baa3 rating,” it said.

Earlier in the day, Moody’s raised India’s credit rating outlook to ‘positive’ and said an upgrade in its sovereign rating is also possible in the next 12-18 months.

India’s sovereign rating currently stands at ‘Baa3’, the lowest investment grade -- just a notch above ‘junk’ status.

The 12 state-owned financial institutions include State Bank of India, Punjab National Bank, Bank of Baroda, Bank of India, Canara Bank, Oriental Bank of Commerce, Power Finance Corp, and Rural Electrification Corp.

The rating agency said an improvement in the government’s own creditworthiness, as measured by its sovereign rating, has the potential to lift the supported ratings for the financial institutions.

“The assignment of a positive outlook on the sovereign’s and the financial institutions’ ratings signals a higher probability of the sovereign providing support to the financial institutions in times of stress,” it said.

(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)

0

Read Latest News and Breaking News at The Quint, browse for more from news and business

Topics:  Moody's   SBI   Canara Bank 

Speaking truth to power requires allies like you.
Become a Member
3 months
12 months
12 months
Check Member Benefits
Read More
×
×