S&P ups Export-Import Bank of India to BBB

Standard & Poor's said it raised its long- and short-term foreign- and local-currency issuer credit ratings of the Export-Import Bank of India to BBB-/A-3 from BB+/B.

The outlook is stable.

The changes reflect the upgrade in the sovereign ratings of the Republic of India to BBB-/stable/A-3.

The ratings on India the bank are identical to those on the Republic of India, reflecting the bank's importance as a public policy bank, the agency said. S&P said it believes the principal source of risk for the bank is the sovereign risk, particularly the persistent high public sector deficits of the government of India.

As a government agency, the bank is exposed to this risk via the consequent impairment of the government's fiscal flexibility, which constrains its capacity to extend capital support or assistance in case of financial distress, S&P said.

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