Fitch Ratings has assigned final ratings to Union Bank of India’s (BBB-/Stable) USD300 million 5.230% senior unsecured notes due August 2029 and USD300 million 5.417% senior unsecured notes due August 2031. Both tranches have been rated ‘BBB-‘. These ratings reflect the bank’s direct, unconditional, unsubordinated, and unsecured obligations, issued by its Dubai International Financial Centre branch.
Fitch Assigns Final Ratings to Union Bank of India’s Senior Bonds
Fitch Ratings has officially assigned final ratings to Union Bank of India’s (UBI) USD600 million senior unsecured notes. The announcement, dated August 27, 2026, confirms a ‘BBB-‘ rating for both the USD300 million notes due in August 2029 with a 5.230% coupon, and the USD300 million notes due in August 2031 with a 5.417% coupon.
Key Rating Drivers and Structure
The senior unsecured instruments are rated at the same level as the bank’s Long-Term Issuer Default Rating (IDR). UBI’s Long-Term IDR and Government Support Rating are equalized with the Indian sovereign’s IDR (BBB-/Stable), reflecting Fitch’s view of a high probability of extraordinary state support for Union Bank of India. This assessment considers the Indian government’s 75% ownership, the bank’s substantial size, its pan-India franchise, and the government’s propensity to support the banking system. The ratings are for securities issued by Union’s Dubai International Financial Centre Branch and rank pari passu with Union’s other unsubordinated and unsecured obligations.
Rating Sensitivities
Fitch indicates that any downgrade of UBI’s IDR would likely result in a similar change to the notes’ rating. Conversely, an upgrade of the IDR would lead to a similar upgrade for the notes. The senior unsecured long-term rating (xgs) is currently rated ‘BB(xgs)’, aligned with the bank’s Viability Rating of ‘bb’.
Source: BSE
