Moody's revises view on two India banks

Moody's Investors Service said it affirmed the foreign-currency issuer ratings of Export-Import Bank of India (EXIM India), Rural Electrification Corp. Ltd. and Power Finance Corp. Ltd. at Baa3.

Moody's also said it changed the outlook to stable from positive on Rural Electrification and Power Finance. The outlook on EXIM India remains positive.

The outlook revisions are in line with Moody's repositioning of the support assumptions for Indian public sector banks to the mid-point of the very high support bucket range from the maximum end of the range, the agency explained.

This means that typically the maximum rating uplift above the baseline credit assessment is three notches, Moody's noted.

Both Power Finance and Rural Electrification are majority owned by the Ministry of Power and play a strategic role in the furtherance of the government's policy objectives in the power space, including being the nodal agencies for key schemes run by the central government in the power sector, the agency said.

In addition, the banks play a critical role in financing state generation and transmission companies, Moody's said.

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