The rating outlook is stable. The tap bond offering has the same terms and conditions as the exiting notes, and is being issued from its
BOB's standalone bank financial strength rating (BFSR) of D is equivalent to a BCA of ba2, reflecting the bank's: weak asset quality and capital metrics relative to other rated Indian banks and regional peers. It also takes into consideration its adequate earnings power relative to its domestic peers, its sound deposit franchise and comfortable liquidity position.
Nonetheless, Moody's believes that the probability of systemic support for BOB, if needed, is very high, given the bank's importance to the domestic banking system. BOB held a 7% share of total system deposits at
Moody's assessment of systemic support results in a two notch uplift of the bank's senior unsecured debt rating and local currency deposit ratings to Baa3 from BOB's BCA of ba2.
Most Popular Stories
- New Hershey's Logo Revealed
- Americans Still Pessimistic Despite Economic Growth
- Obama's Delay on Immigration Creates Uncertainty
- Startups Offer Smartphone Banking Apps
- Mexico's Pemex Forecasts 6.7% Drop in 2014 Crude Production
- Echeveste Steps Down, Perez Steps Up at VPE
- 'Longmire' Cancelled, Looks for New Network
- Clippers Deal Started With 2 Numbers
- Hip-Hop Takes Up Ferguson Cause
- Illinois Issues Fracking Rules