Icra Upgrades IDBIs Long-term Debt, IDBI Banks Bonds

Mumbai, Sept 20 | Updated: Sep 21 2004, 08:36am hrs
Rating agency Icra has upgraded the ratings of IDBIs long-term borrowing programme, along with the Rs 130 crore subordinate bond of IDBI Bank, to high rating LAA+ from the previous LAA. Both indicate high safety.

The rating factored IDBIs role as a lead development financial institution as visualised by government and the stressed asset swap of Rs 9,000 crore with a 20 year zero coupon government of India bonds, Icra said in a press release.

The rating draws comfort from government ownership of IDBI imparting implicit sovereign support and its important position in the Indian financial system. The rating of IDBI Banks subordinate bond was upgraded following revision in long term ratings of IDBI.