Moody's affirms ratings for IDBI Bank's long-term deposits at "Ba2"

Flags increased uncertainty over level of govt support despite improvement in asset quality, capital and funding

Rating agency Moody's today affirmed IDBI Bank's long-term deposits at “Ba2” due to an increase in uncertainty in the level of support from the government, despite significant improvement in asset quality, capital and funding.

At the same time, Moody's has upgraded private sector lender's baseline credit assessment (BCA) and adjusted BCA from “b2” to “b1”. The upward revision in BCA is driven by improvement in financial profile.

The outlook on the ratings remains stable as IDBI's improving solvency metrics is offset by risks of lower government of India's support.

Moody's in a statement said uncertainty around the level of extraordinary support has increased