Moody's changes the Ratings of Indian Banks and Financial Institutions
The upgrade of IFCI’s foreign currency issuer rating is based solely on the high likelihood of external government support, due to its majority state ownership. The severity of financial problems IFCI faces, although similar in nature to those faced by IDBI, are far greater. Repeated losses in recent years have gradually eroded IFCI’s equity, raising concerns over its solvency. Nonetheless, direct and indirect government support has ensured the timely repayment of all foreign currency borrowings despite IFCI defaulting to various institutional investors on its local currency liabilities. Without imputing any government support, IFCI’s foreign currency debt issuer rating would have been much lower considering its weak financial condition. Moody’s also notes that IFCI may cease to exist as a separate legal entity in the near future since a possible merger with Punjab National Bank is currently being considered.
Rating of Power Finance Corporation...Read Moody's Comments
Rating of Industrial Development Bank of India...Read Moody's Comments
Rating of Punjab National Bank...Read Moody's Comments
Rating of Central Bank of India...Read Moody's Comments
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