Moody’s Investors Service has assigned a (P)Baa2 long-term foreign currency senior unsecured program rating to RBL Bank Ltd.’s newly established USD 1 billion Medium Term Note (MTN) program. The rating outlook is stable. This action signifies Moody’s assessment of RBL Bank’s creditworthiness concerning its foreign currency debt issuance, reflecting the bank’s baseline credit assessment and potential support from its largest shareholder.
RBL Bank Secures ‘Baa2’ Rating for New Debt Program
RBL Bank Ltd. has received a significant credit rating from Moody’s Investors Service for its newly established USD 1 billion Medium Term Note (MTN) program. Moody’s has assigned a provisional rating of (P)Baa2 for long-term foreign currency senior unsecured debt under this program. The rating action also extends to the bank’s International Financial Service Centre Banking Unit.
Stable Outlook and Key Rationale
The assigned rating outlook is stable. Moody’s rationale for the (P)Baa2 rating on the MTN program is consistent with RBL Bank’s existing Baa2 long-term foreign currency issuer rating. This rating incorporates the bank’s baseline credit assessment (BCA) of ba1, along with a two-notch uplift attributed to the assumed very high probability of support from its largest shareholder, Emirates NBD Bank PJSC (ENBD). The bank’s issuer rating is not uplifted by government support due to its higher rating than India’s sovereign rating.
Counterparty Risk Assessments
In addition to the MTN program rating, Moody’s has assigned long-term/short-term Counterparty Risk Assessments of Baa2(cr)/P-2(cr) and long-term/short-term local and foreign currency Counterparty Risk Ratings of Baa2/P-2 to RBL Bank Ltd., IFSC Banking Unit. These ratings reflect Moody’s evaluation of the bank’s ability to meet its counterparty obligations.
Source: BSE
