Global rating agency says potentially stressed assets and low loss-absorbing buffers may add pressure to the bank's funding and liquidity, and create additional risks to its standalone credit profile
Moody's rating action assumes that BPCL's status as a government-owned entity in India will continue until at least the conclusion of the proposed sale
The rating outlooks for Bank of India, Canara Bank, Syndicate Bank and Union Bank of India are maintained at stable.
'Moody's believes that the reforms put in place have reduced the risk of a sharp increase in debt, even in potential downside scenarios' it said
Arvind Mayaram, former chief finance ministry official, calls the govt's approach completely unusual