It has also affirmed the lender's short-term issuer rating at 'A1+'.
The long-term issuer rating reflects Bank of Baroda's high systemically important position, and hence, a high probability of support from the government if required, the rating agency said in a note.
The lender continues to be among the better capitalised public sector banks (PSBs), with a common equity tier 1 of 9.05 per cent in the first half of the current fiscal, against 9.23 per cent in FY18.
The agency said its capitalisation could strengthen further if it manages its risk weights and growth, and increases its profitability.
The bank also has an option to raise capital by monetising non-core assets, planned over FY19-FY20, to support its capital requirements, it added.
The lender's asset quality is modest with high delinquencies than similar rated banks, the agency said.
Its gross non-performing assets (NPAs) marginally declined to 11.78 per cent in the first half of FY19, compared with 12.26 per cent in FY18.
The provision coverage excluding technical write-offs was about 62 per cent in the first half of FY19.
The bank's had a total deposit market share of 5.3 per cent as on March 31, 2018.