After upgrading India’s sovereign rating by a notch to ‘Baa2’ global rating agency Moody’s on Friday raised long-term ratings of four Indian financial institutions – State Bank of India (SBI), HDFC Bank, EXIM India and Indian Railway Finance
Corporation (IRFC) – to ‘Baa2’ from ‘Baa3’.
It has upgraded the counterparty risk (CR) assessment of private lender HDFC Bank
and its Hong Kong branch to Baa1 (cr) from Baa2 (cr), and CR assessment for SBI
and its three overseas branches – Hong Kong, London and Nassau – to Baa2(cr)/P-2(cr) from Baa3(cr)/P-3(cr).
Moody's assigned a CR assessment of Baa2 (cr) /P-2(cr) to SBI, DIFC branch.
In the case of private lender HDFC Bank, the agency upgraded the baseline credit assessment (BCA) and adjusted BCA to baa2 from baa3.
Moody's has also changed the ratings outlook to ‘stable’ from ‘positive’ for IRFC, EXIM India (and its London branch), HDFC Bank
(and its Bahrain and Hong Kong branches), and SBI
(and its Hong Kong, London, and Nassau branches).
Moody's has assigned a stable outlook to SBI's DIFC branch.