Moody's downgrades BoB's baseline credit assessment on asset quality issues

Agency also cites deteriorating operating environment for decision; affirms lender's domestic and foreign bank deposit ratings

Global rating agency Moody’s has downgraded Bank of Baroda (BoB)'s baseline credit assessment (BCA) from “ba2” to “ba3” on weakening asset quality and further risks from the deteriorating operating environment in India.

The agency said deterioration in asset quality poses risks to BoB's profitability and capital.

Moody's affirmed the public sector lender's domestic and foreign bank long-term and short-term deposit ratings of Baa3, stable/P-3. It also affirmed Bank of Baroda (London)'s foreign currency senior unsecured rating of Baa3, stable. Two public sector banks – Dena Bank and Vijaya Bank merged with Bank of Baroda from April 01, 2019.

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