Federal Bank gets inaugural BBB- investment-grade issuer rating from S&P

S&P Global Ratings assigned the private sector lender a BBB-/Stable long-term issuer credit rating, recognising its franchise strength, capitalisation and financial resilience

Private sector lender Federal Bank on Thursday said S&P Global Ratings has assigned it an inaugural international issuer credit rating of BBB-/Stable for the long term and A-3 for the short term, placing the lender in the global investment-grade category.

 

The BBB- long-term issuer credit rating is the first international issuer credit rating assigned to the bank by S&P Global Ratings.

 

The bank said in a statement that the rating reflects its franchise strength, disciplined risk management, sound capitalisation, diversified funding profile, liquidity position and consistent financial performance.

 

Additionally, the bank said the investment-grade rating is expected to enhance its visibility among global investors and international financial institutions, while strengthening confidence among customers, counterparties and other stakeholders.

 

 

"Our inaugural international investment-grade issuer rating from S&P Global Ratings is an important milestone for Federal Bank. It reflects the strength of our franchise, the resilience of our business model and the disciplined approach we have adopted towards growth, risk management and governance," said K V S Manian, Managing Director and Chief Executive Officer, Federal Bank.

 

He said the rating comes at a key stage in the bank's growth journey as it focuses on customer service, sustainable growth and long-term value creation while maintaining strong financial fundamentals.

 

Federal Bank said it has strengthened its balance sheet over the years by improving the quality of its liabilities, maintaining healthy capital buffers, enhancing profitability and continuing to invest in technology and customer experience. It added that the investment-grade rating reflects the progress it has made in building a resilient and sustainable banking franchise.