Fitch Ratings lowered India-based Canara Bank's viability rating to "bb-" from "bb," while affirming the bank's BBB- long-term issuer default rating.
The downgrade reflects the bank's "persistently moderate" core capital position relative to similarly or higher rated peers, and delays in its capital-raising plans, Fitch said.
At the same time, the rating agency affirmed the BBB- long-term issuer default ratings of State Bank of India, Bank of Baroda and unit Bank of Baroda (New Zealand) Ltd., Punjab National Bank and Bank of India. It also affirmed the BB+ long-term issuer default rating of IDBI Bank Ltd.
Fitch maintained Bank of Baroda's viability rating on Rating Watch Negative, noting that it may take a few months before the full impact of the bank's three-way merger with Vijaya Bank and Dena Bank appears on its combined financial position.