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Moody’s assigns counterparty risk ratings to 15 Indian banks

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Moody’s assigns counterparty risk ratings to 15 Indian banks

Moody's assigned counterparty risk ratings to 15 Indian banks and their branches and upgraded the counterparty risk assessments of four banks.

The rating agency assigned a Baa2(cr)/P-2(cr) local currency counterparty risk rating to Bank of Baroda, State Bank of India, ICICI Bank Ltd. and Axis Bank Ltd.

Moody's said the counterparty risk ratings are opinions of the ability of entities to honor the uncollateralized portion of non-debt counterparty financial liabilities and also reflect the expected financial losses in the event that such liabilities are not honored. Such liabilities typically relate to transactions with unrelated parties.

Punjab National Bank, Oriental Bank of Commerce, Yes Bank Ltd. and Union Bank of India were assigned a local currency counterparty risk rating of Baa3(cr)/P-3(cr). Canara Bank, Syndicate Bank Ltd. and Bank of India were also assigned Baa3(cr)/P-3(cr) counterparty risk ratings.

Further, Moody's assigned Central Bank of India and Indian Overseas Bank Ba2(cr)/NP(cr) counterparty risk ratings. HDFC Bank Ltd. was assigned a counterparty risk rating of Baa1(cr)/P-2(cr), while IDBI Bank Ltd. was assigned a Ba3(cr)/NP(cr) counterparty risk rating.

At the same time, Moody’s upgraded counterparty risk assessments of Axis Bank, Bank of Baroda and ICICI Bank to Baa2(cr)/P-2(cr) from Baa3(cr)/P-3(cr). Punjab National Bank's assessment was upgraded to Baa3(cr)/P-3(cr) from Ba1(cr)/NP(cr).