The private creditor Federal Bank announced that S&P Global Ratings has assigned it its first international issuer credit rating of BBB-/Stable for the long term and A-3 for the short term. This places the creditor in the category of global investment-grade ratings.
Reasons for the Rating Assignment
The BBB- long-term rating is the first international credit rating assigned by S&P Global Ratings to this bank. The bank stated in its announcement that this rating reflects the strength of its franchise, disciplined risk management, solid capitalization, diversified funding profile, liquidity, and stable financial performance.
Expected Consequences of the Rating
Furthermore, the bank noted that obtaining an investment rating should increase its recognition among international financial institutions and global investors, while simultaneously strengthening the trust of clients, counterparties, and other stakeholders.
Comments from Bank Management
K V S Manian, Managing Director and CEO of Federal Bank, emphasized that receiving the first international investment rating from S&P Global Ratings is a significant milestone for Federal Bank. He noted that this rating testifies to the strength of the franchise, the sustainability of the business model, and the disciplined approach to growth, risk management, and corporate governance.
According to Manian, this rating was obtained at a key stage of the bank's development, as the institution is focused on creating long-term value, serving customers, and achieving sustainable growth while maintaining strong financial foundations. Federal Bank reported that over the past years, it has strengthened its balance sheet by improving the quality of assets, maintaining healthy capital buffers, increasing profitability, and continuing investments in technology and customer experience. The bank added that the investment rating reflects the progress made in building a sustainable and viable banking franchise.