EXIM Bank Holds Its Ground! Fitch’s ‘BBB-’ Rating Signals Steady Course for India’s Trade Titan

Fitch Ratings has once again affirmed Export-Import Bank of India (EXIM Bank)'s long-term issuer default rating of 'BBB-' with a stable outlook, highlighting the bank's utmost strategic significance for India's trade and economic policy abroad. This affirmation mirrors the bank's maximum strategic value for the Indian government due to 100% state ownership and being a policy bank. Fitch underscored that EXIM Bank's long-standing statutory mandate to support and finance India's foreign trade guarantees strong sovereign linkages.

The stable outlook is consistent with that of India's sovereign rating, reflecting that EXIM Bank's credit profile hinges closely on the government's own fiscal position. Fitch added that the bank's creditors are well-supported, considering EXIM's access to liquidity from authorities in times of crisis. The agency further highlighted that weakening in the support of the government or a policy direction change from EXIM can affect future ratings, but that is not happening in the short term.

The affirmation reflects continued faith in the stability of EXIM Bank, policy significance, and strong government support as it continues to ease India's ambition to trade on the global level.

Source: Fitch Ratings, Economic Times, NDTV Profit, Moneycontrol