IndusInd Bank slips after Moody's changes outlook to negative

IndusInd Bank fell 2.84% to Rs 1255.45 after Moody's Investors Service on Tuesday affirmed IndusInd Bank's domestic and foreign currency issuer ratings of Baa3/P-3.

Moody's has also affirmed the bank's domestic and foreign currency bank deposit ratings of Baa3/P-3, foreign currency senior unsecured rating of Baa3, foreign currency senior unsecured MTN program rating of (P)Baa3, and Baseline Credit Assessment (BCA) and adjusted BCA of ba1.

At the same time, Moody's has affirmed the bank's counterparty risk assessment (CR Assessment) of Baa3(cr)/P-3(cr), and domestic and foreign currency counterparty risk rating (CRR) of Baa3/P-3.

The affirmation of the rating is driven by the bank's strong buffers, both capital and profitability, which result in strong ability to absorb asset quality stress, Moody's said in a statement.

Moody's has changed the outlook, where applicable, to negative from stable to account for the risk of further asset quality deterioration. The bank could also be negatively impacted by the ongoing stress in the telecommunications sector, the ratings agency said.

IndusInd Bank provides a range of banking and financial services including wholesale banking, credit monitoring, risk management, tele-banking, investment banking and commercial lending.

Powered by Capital Market - Live News