Crisil Reaffirms OBC FD Ratings

Mumbai, July 27 | Updated: Jul 28 2004, 05:30am hrs
Crisil has reaffirmed the ratings on Oriental Bank of Commerces (OBC) outstanding bonds issues, fixed deposit programme and certificate of deposit programme at AA+, FAAA and P1+, respectively. This follows RBIs proposed scheme for amalgamation of Global Trust Bank (GTB) with OBC, says Crisil.

The rating agency said that the scheme is silent on the treatment of potential losses arising out of the stressed taken-over. In the worst case scenario, if OBC has to bear the losses, the impact on OBCs financial profile is not likely to be significant to warrant a change in its ratings. Considering the relative sizes of GTB and OBC, the impact of the high proportion of stressed assets in GTBs balance sheet on the standalone credit profile of OBC is not likely to be significant enough to impact the rating of OBC.