Moody’s has affirmed Baa3 ratings for Bank of Baroda and upgraded the bank’s Baseline Credit Assessments (BCAs) by one notch to ba1. The ratings affirmation reflects expectations of continued support from the Government of India. These assessments follow Moody’s updated Banks methodology and signal confidence in the bank’s financial stability and capitalization.
Moody’s Rating Action
Moody’s Ratings has affirmed Bank of Baroda’s Baa3 ratings and upgraded its Baseline Credit Assessments (BCAs) to ba1. This action follows the publication of Moody’s updated Banks methodology, reflecting changes to the BCA framework and adjustments to the Macro Profile factor scores.
Rationale for the Upgrade
The affirmation of the Baa3 ratings reflects Moody’s expectation of a very high probability of support from the Government of India. The upgrade of the BCAs reflects updated ratio definitions and scoring calibration for the Capital subfactor, as well as improvements in asset quality and capitalization.
Impact on Bank of Baroda
The upgrade signals improved confidence in Bank of Baroda’s standalone credit profile. This assessment also takes into consideration the bank’s important role in the Indian financial system.
Moody’s Methodology Updates
Moody’s updated Banks methodology maintains its overall approach but includes changes to metrics, recalibration of thresholds, and updated ratio definitions. These adjustments refine the assessment of banks’ financial profiles.
Source: BSE
