IDFC First Bank Receives First International Investment-Grade Rating From S&P Global
Key Takeaways
- •S&P Global Ratings assigned IDFC First Bank 'BBB-' long-term and 'A-3' short-term issuer credit ratings with a Stable Outlook, marking the bank's first international rating.
- •The 'BBB-' grade is the lowest rung of investment grade on S&P's scale, representing the threshold separating investment-grade from speculative-grade credit.
- •The Stable Outlook indicates S&P currently expects no change to the rating over the medium term.
- •IDFC First Bank was formed through the 2018 merger of IDFC Bank and Capital First and has been repositioned as a retail-focused lender under MD & CEO V. Vaidyanathan.
- •The investment-grade rating provides a benchmark for global lenders and bond investors operating under investment-grade mandates and gives stakeholders an external yardstick for future offshore borrowings and rating actions.
IDFC First Bank has received its first international credit rating, with S&P Global Ratings assigning the Indian lender 'BBB-' long-term and 'A-3' short-term issuer credit ratings with a Stable Outlook. The move marks the bank's first international investment-grade rating.
On S&P's scale, 'BBB-' is the lowest rung of investment grade — the threshold separating investment-grade from speculative-grade credit — while 'A-3' is the corresponding short-term assessment, and a Stable Outlook indicates the agency currently expects no change to the rating over the medium term. For IDFC First Bank, formed through the 2018 merger of IDFC Bank and Capital First and since repositioned as a retail-focused lender under MD & CEO V. Vaidyanathan, the international investment-grade tag provides a reference benchmark for global lenders and bond investors, many of whom operate under mandates restricted to investment-grade paper.
The rating also gives the bank's stakeholders an external yardstick against which any future offshore borrowings and subsequent rating actions by S&P can be tracked.
Source: CNBC-TV18
