Moody's: Syndicate notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to Syndicate Bank's proposed issuance of long-term senior unsecured notes under its $1 billion medium term-note program.

The outlook is negative.

Moody's has a D+ standalone bank financial strength rating for Syndicate Bank, which maps to a baseline credit assessment of Ba1 on the long-term scale. The outlook is negative.

Moody's said it believes that the probability of systemic support for Syndicate Bank is very high from the Indian government in an event of a systemic crisis. The Indian government has in the past supported Indian public sector banks, including Syndicate Bank, by infusing equity and providing liquidity support when required.

Therefore, the long-term local currency deposit and foreign currency senior unsecured debt ratings receive a two-notch rating uplift from its baseline credit assessment, the agency said.

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