S&P: Kotak Mahindra Bank BBB-

Standard & Poor's said it assigned a BBB- long-term and A-3 short-term counterparty credit ratings to Kotak Mahindra Bank.

The outlook is negative.

The ratings are based on the bank's adequate business position, strong capital and earnings, adequate risk position, below average funding and adequate liquidity, S&P said.

The anchor rating for a commercial bank operating only in India is BBB-, the agency said.

The ratings also reflect the bank's presence in the insurance, securities, asset management and investment banking businesses, which enhances its diversification and provides revenue stability even though the bank's size and franchise are small, S&P said.

Kotak Mahindra Bank also has an experienced management team, which has a record of successful execution of operational plans, shown by a shift to the commercial bank business model from a finance company, the agency said.

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