Latest News | Moody's Places IndusInd Bank's Baseline Credit Assessment Under Review for Downgrade
Get latest articles and stories on Latest News at LatestLY. IndusInd Bank on Tuesday said global rating agency Moody's has placed the bank's baseline credit assessment (BCA) under review for a possible downgrade.
New Delhi, Mar 18 (PTI) IndusInd Bank on Tuesday said global rating agency Moody's has placed the bank's baseline credit assessment (BCA) under review for a possible downgrade.
The rating review comes days after IndusInd Bank disclosed a Rs 2,100 crore discrepancy in accounting with an estimated impact of 2.35 per cent of the bank's net worth.
"Moody's has placed IndusInd's Ba1 Baseline Credit Assessment (BCA) and adjusted BCA under review for downgrade," IndusInd Bank said in a regulatory filing.
Baseline credit assessments are based on the entity's standalone financial health, without considering any support it might get from related companies.
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However, the filing said, Moody's has affirmed 'Ba1/NP (Stable)' to the bank's long-term (LT) and short-term (ST) foreign and local currency (LC) bank deposits and issuer ratings and counterparty risk ratings (CRRs).
The rating agency has also affirmed long-term and short-term counterparty risk (CR) assessments.
Meanwhile, the Reserve Bank on Saturday assured customers that IndusInd Bank remains 'well-capitalised', even as it directed the bank's board to complete remedial action relating to accounting discrepancy within this month.
There was no need for depositors to react to the speculative reports at this juncture, RBI had said in its statement.
The central bank assured customers and investors that the bank's financial health remains stable and is being monitored closely by it.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)