Moody's rates Export-Import Bank of India notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to the proposed dollar-denominated benchmark senior green notes to be issued by Export-Import Bank of India. The outlook is stable.

The proposed notes are expected to have a tenor of five years, and proceeds will be used to fund green projects.

The agency said Export-Import Bank of India’s Baa3 long-term foreign-currency senior debt rating is underpinned by the bank's standalone credit strength and also takes into account the introduction of the new methodology, including Moody’s basic Loss Given Failure analysis, where creditors are not presumed to absorb losses, since no operational resolution regime is in place.

The bank’s ba2 baseline credit assessment takes into account its good liquidity management, the strong and continuous capital support from the government as sole shareholder and the bank's stable and improving profits, Moody’s said.

On the other hand, the agency said the standalone credit profile also captures the recent stress in asset quality arising from the overall economic downturn.

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