Fitch Ratings has assigned an expected rating of ‘BBB-(EXP)’ to Union Bank of India’s proposed U.S. dollar-denominated senior unsecured notes. These notes, to be issued by the Dubai International Financial Centre branch, will be direct, unconditional, and unsecured obligations of the bank. The rating is on par with Union Bank of India’s existing Long-Term Issuer Default Rating of ‘BBB-/Stable’.
Fitch Ratings Assigns Expected Rating to Union Bank of India’s Senior Notes
August 21, 2026 – Fitch Ratings has assigned an expected rating of ‘BBB-(EXP)’ to the proposed U.S. dollar-denominated senior unsecured notes to be issued by Union Bank of India (UBI). These notes are expected to be issued by UBI’s Dubai International Financial Centre branch. The rating is contingent on the receipt of final documentation aligning with Fitch’s reviewed information.
Rating Rationale and Structure
The proposed senior unsecured notes are rated at the same level as UBI’s Long-Term Issuer Default Rating (IDR) of ‘BBB-/Stable’, in line with Fitch’s criteria. The notes will constitute UBI’s direct, unconditional, unsubordinated, and unsecured obligations, ranking pari passu with all other unsubordinated and unsecured obligations of the bank.
Issuer and Sovereign Linkage
UBI’s Long-Term IDR and Government Support Rating are equalized with India’s sovereign IDR of ‘BBB-/Stable’. This reflects Fitch’s assessment of a high probability of extraordinary support for UBI from the Indian state, considering the state’s 75% ownership, the bank’s substantial size, its pan-India franchise, and the government’s propensity to support the banking system.
Other Debt Ratings
Fitch has also assigned an expected senior unsecured long-term rating (xgs) of ‘BB(xgs)(EXP)’ to the proposed notes, reflecting UBI’s Viability Rating of ‘bb’.
ESG Considerations
Union Bank of India has an ESG Relevance Score of ‘4’ for Governance Structure, indicating that governance aspects have a moderate influence and are negative for the bank’s credit profile. This score is in line with similarly rated state-owned banks, with factors such as board composition and government strategy influencing lending decisions.
Source: BSE
