Fitch Ratings affirmed the "bb" viability rating on India's Bank of Baroda and removed the rating from Rating Watch Negative.

The rating agency said Dec. 17 that it also affirmed the bank's long- and short-term issuer default ratings at BBB- and F3, respectively, with a stable outlook. The lender's support and support rating floor were affirmed at 2 and BBB-, respectively.

The removal of the bank's viability rating from Rating Watch Negative came after the bank's reporting of consolidated financial statements since its merger with Vijaya Bank and Dena Bank in April.

The affirmation of the bank's viability rating reflects its stable asset quality in the six months since the merger, Fitch said, adding that it expects the bank's overall performance to remain subdued given the weak macro environment and potential stress in the nonbank and real estate sectors in India.