Crisil upgrades PSU bank arms

Following upgrades of public sector banks, it is now the turn of their subsidiaries to get upgrades from rating agency Crisil.

Crisil has upgraded the bond issues and fixed deposits of BoB Housing Finance, Canbank Factors, Cent Bank Home Finance and PNB Housing Finance.

The Rs 20 crore subordinated bond issue of BoB Housing Finance Ltd has been upgraded to 'AA+/Positive' from 'AA/Stable'.

This rating upgrade on BoB Housing Finance's (BoB Housing) debt programme follows Crisil's upgrade of its parent, Bank of Baroda's long-term rating from 'AA+' to 'AAA/Stable'.

The revision in the outlook on BoB Housing's rating is because of its expected merger with BoB, following which its credit profile will be similar to that of its parent.

The Rs 25 crore non-convertible debenture programme of Canbank Factors Ltd has been upgraded to 'AA+/Stable' (from 'AA/Stable') along with upgrades for the fixed deposit programme 'FAAA/Stable' (from 'FAA+/Stable') and a reaffirmation of the Rs 65 crore short-term debt programme at P1+.

The rating upgrade is based on the recent upgrade of the long-term CRISIL rating of its parent Canara Bank from AA+/Stable to AAA/Stable.
CRISIL expects Canbank Factors to receive support from its parent, Canara Bank in the form of management, business or capital support, as and when needed.

Cent Bank Home Finance Ltd's fixed deposit programme has been upgraded from 'FAA' (from 'FAA-'). This follows a reassessment of its majority owner, Central Bank of India's (Central Bank) credit profile.

The rating continues to be based on the support that Cent Bank Home Finance receives from its parent. PNB Housing Finance Ltd's Rs 25 crore non-convertible debentures programme has been upgraded from 'AA+/Stable' (from 'AA/Stable'), the Rs 25 crore subordinated bond issue's rating has been raised to 'AA+/Stable' (from 'AA/Stable'), the Rs 75 crore non-convertible debentures programme's rating has been upped to 'AA+/Stable' (from AA/Stable), the fixed deposit programme's to 'FAAA/Stable' (from 'FAA+/Stable') and a reaffirmation of 'P1+' for the Rs 25 crore paper programme.

CRISIL has upgraded the ratings following a reassessment of its parent, Punjab National Bank's credit profile.

PNB Housing's ratings draw significant support from its 100 per cent ownership by PNB, one of the largest scheduled commercial banks in India.