Canara Bank’s Ratings Affirmed

Canara Bank’s Ratings Affirmed

Capital Intelligence Ratings (CI Ratings or CI ) today announced that it has affirmed the Long-Term Foreign Currency Rating (LT FCR) and Short-Term Foreign Currency Rating (ST FCR) of Canara Bank (CB) at ‘BB+’ and ‘B ’, respectively . At the same time , CI Ratings has also affirmed CB’s Bank Standalone Rating (BSR) of ‘ bb – ’, C ore Financial Strength (CFS) rating of ‘ bb – ’ and Extraordinary Support Level (ESL) of High . The Outlook for the LT FCR and BSR is Stable .

The Bank’s LT FCR is set two notches above the BSR to reflect the high likelihood of extraordinary support from the government (which is a majority shareholder). The government’s moderate creditworthiness precludes any additional notching. The High ESL is underpinned by the Bank’s large size, large domestic presence and systemic importance , as well as by the government’s good track record…