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 affirmed CB’s Bank Standalone Rating (BSR) of ‘bb-’, Core Financial Strength (CFS) rating of ‘bb-’ and Extraordinary Support Level (ESL) of High. The Outlook for the LT FCR remains Negative, in line with CI’s internal assessment of India’s sovereign risk. The Outlook for the 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) in case of need. Our internal assessment of the government’s moderate creditworthiness precludes any additional notching. The High ESL is underpinned by the Bank’s large size,…