Bank of Baroda’s LT FCR and BSR Outlook Revised to Negative Following Change in Sovereign Risk Assessment

Ref: IN00120 PBK 00- 0 1 5 May 2020

Bank of Baroda’s LT FCR and BSR Outlook Revised to Negative Following Change in Sovereign Risk Assessment

Capital Intelligence Ratings (CI Ratings or CI ) today announced that it has revised the Outlook on the Long-Term Foreign Currency Rating (LT FCR) and Bank Standalone Rating (BSR) of Bank of Baroda (BOB ) to Negative from Stable . This follows a change in CI R atings ’ in ternal assessment of the credit worthiness of the Indian sovereign , and reflects our expectation that India’s economy and public finances could deteriorate over the next 12 months due to the adverse financial impact of the coronavirus ( C ovid-19 ) pandemic. Moreover, a weaker operating environment c ould negatively impact the asset quality and profit ability of the banking sector. Since BOB’s LT FCR is closely aligned with sovereign risk , any change in our internal assessment of sovereign…