Fitch Ratings has today assigned an 'A+(ind)' rating to The South Indian Bank Limited's (SIB) INR2bn subordinated Lower Tier 2 debt programme. SIB's existing ratings are as follows:
- 'A+(ind)' National Long-term rating;
- 'D' Individual rating;
- '5' Support rating; and
- 'A+(ind)' INR1.3bn existing subordinated Lower Tier 2 bond;
The Outlook is Stable.
SIB's ratings reflect its improved financials, relatively small size and predominantly regional franchise. The ratings also take into account SIB's above-average capitalisation ratios. For more information on the entity, please see Fitch's press release "Fitch Affirms South Indian Bank's 'A+(ind)' National Long-term Rating" dated 2 April 2009 and Credit Update dated 8 April 2009.
SIB is an 'old' private sector bank based in the state of Kerala. The bank lends primarily to regional SMEs through its network of 539 branches; over 53% of its deposits and 33% of its advances are sourced from its home state.
Note to editors: Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(ind)' for National ratings in India. Specific letter grades are not therefore internationally comparable.
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