Rating agency downgrades debt instruments of IDBI Bank

 ICRA has downgraded the ratings for IDBI Bank’s Rs 8,000 crore infrastructure bonds programme, Rs 230.50 crore flexibonds series, Rs 25,742.72 crore senior and lower Tier II bonds programme and Rs 70 crore subordinated debt programme (of the erstwhile IDBI Home Finance) to ICRA AA- from ICRA AA.

 ICRA has also downgraded the rating for the bank’s Rs 5,000 crore Basel III complaint Tier II Bonds to ICRA AA- from ICRA AA, for the Rs 2,500 crore additional Tier I bonds programme under Basel III to ICRA A from ICRA A+ and for the Rs 4,286.20 crore upper Tier II bonds programme and Rs 1,708.80 crore Basel II compliant perpetual bonds programme to ICRA A+ from ICRA AA-. ICRA has also downgraded the medium-term rating on the bank’s fixed deposits programme to MAA from MAA+.

ICRA has reaffirmed the rating on the Rs 35,000 crore certificates of deposit programme at ICRA A1+. The outlook on all long-term and medium-term ratings is negative, the rating agency said.