Fitch assigns BBB- rating to Bank of India’s $1 billion MTN programme
In short
Fitch Ratings gave Bank of India’s $1 billion MTN programme a BBB- rating. The report says the bank’s long-term rating and government support rating are tied to India’s BBB-/Stable sovereign rating.
Fitch said it sees a high chance of state support if the bank needs it. The sources do not say when the notes will be issued or how the market will react.
What the reporting says
Fitch Ratings assigned a BBB- rating to Bank of India’s $1 billion medium-term note programme, according to the reporting. The source says the bank’s Long-Term IDR and Government Support Rating are equalised with India’s sovereign BBB-/Stable rating because Fitch sees a high probability of extraordinary state support if needed. The rating action supports funding access, but the exact timing and issuance details are not stated.
Why it matters
Fitch Ratings assigned Bank of India’s $1 billion medium-term note programme a BBB- rating. The reporting says the bank’s Long-Term IDR and Government Support Rating are equalised with India’s sovereign BBB-/Stable rating, reflecting Fitch’s view that extraordinary state support is highly likely if required. This is a credit-rating action that may support funding access, but issuance timing and investor demand are not stated.