Fitch Ratings has affirmed the Long-Term Issuer Default Ratings (IDRs) of Bank of Baroda and Bank of Baroda New Zealand at ‘BBB-’ with a Stable Outlook. The agency also upgraded the bank’s Viability Rating (VR) to ‘BB’, reflecting improved fundamentals, stable capital buffers, and resilient business performance.
Fitch Ratings has reaffirmed confidence in Bank of Baroda (BoB) and its New Zealand subsidiary, maintaining their Long-Term IDRs at ‘BBB-’ with a Stable Outlook. The upgrade of BoB’s Viability Rating to ‘BB’ underscores the bank’s strengthened risk profile, consistent profitability, and improved asset quality.
Key Highlights
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Affirmation of Ratings: BoB and BoB New Zealand’s Long-Term IDRs remain at ‘BBB-’, signaling stable creditworthiness.
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Viability Rating Upgrade: BoB’s VR raised to ‘BB’, reflecting stronger fundamentals and operational resilience.
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Stable Outlook: Fitch expects BoB to maintain adequate capital buffers and liquidity in the near term.
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Business Performance: The bank’s diversified operations and government backing continue to support its stability.
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Global Subsidiary Impact: Affirmation of BoB New Zealand highlights the group’s international credibility.
This affirmation reinforces Bank of Baroda’s position as a leading public sector bank, balancing domestic growth with global operations. The stable outlook suggests continued resilience amid evolving macroeconomic conditions.
Sources: Fitch Ratings, The Economic Times, Business Standard