Union Bank of India – 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 Union Bank of India (UBI or the Bank) at ‘BBB-’ and ‘A3’, respectively. At the same time, CI Ratings has affirmed UBI’s Bank Standalone Rating (BSR) of ‘bb’, the Core Financial Strength (CFS) rating of ‘bb’ and Extraordinary Support Level (ESL) of High. The Outlook for the LT FCR and the BSR remains Stable.

The Bank’s LT FCR is set two notches above its BSR, in view of the high likelihood of extraordinary support from the government, a majority shareholder, in case of need. The High ESL is supported by the Bank’s large size, with total assets of USD170bn in H1 FY25 (which ends in March), good domestic presence and the government’s track record of helping banks in need.

The BSR is derived from a CFS rating of ‘bb’ and an Operating Environment Risk Anchor (OPERA) of…