Fitch downgrades Indian Bank‘s outlook to negative

MUMBAI, June 4: Credit rating agency, Fitch Ratings has revised public sector lender Indian Bank’s (IB) outlook to Negative from Stable, while affirming its Long-Term Foreign Currency Issuer Default Rating (LT FCIDR) at BBB- .
Fitch has also affirmed IB s Viability Rating (VR) at
Bbb- , Short-term IDR at F3 , Support Rating at 3 , and Support
Rating Floor at BB+ .
Indian Bank National Long-Term rating has been affirmed at
Fitch AA+(ind) with a stable outlook and national short-Term rating at Fitch A1+(ind) . A full list of rating actions is provided at the end of this commentary, a statement said.
The outlook revision on the LT FCIDR reflects increasing asset quality pressures on IB compared with other Indian banks rated
BBB- , on account of both cyclical and structural factors.
However, the risk is somewhat mitigated by the bank s reasonable standalone financials including robust core capitalisation,falling-though-above average profitability, and stable funding and liquidity profile, which explains the stable outlook on the National
Long-Term rating that is one notch below the highest level.
The support rating and Sspport rating Ffoor reflect IB s regional (65 branches in South India) as well as moderate albeit growing franchise (over 1,955 branches), the statement added. (UNI)

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