IDBI Bank disengages Moody’s from rating bonds

New Delhi: State-owned IDBI Bank on Friday said it has disengaged Moody’s Investors Services (Moody’s) to rate its bond programmes.

“Upon reviewing the rating engagements with various foreign rating agencies, IDBI Bank has decided to terminate all the rating contracts/engagements with Moody’s Investors Services (Moody’s) for various issues made under the MTN (medium term note) Bond Programme,” IDBI Bank said in a regulatory filing.

Earlier in August, Moody’s had downgraded the foreign currency senior unsecured MTN programme rating of IDBI and its DIFC branch to (P)B1 from (P)Ba2.

The global ratings firm had also downgraded the bank’s local and foreign currency bank deposit ratings to B1 from Ba2 citing reasons that the lender remains significantly under-capitalised and that government’s capital infusions have been insufficient to repair the bank’s balance sheet.

IDBI had reported a net loss of Rs 198 crore for second quarter ended September of the current fiscal, against a net profit of Rs 56 crore in the same quarter of previous fiscal.

In the first quarter ended June of 2017-18, the bank had registered a net loss of Rs 853 crore. In the previous fiscal, its net losses were to the tune of Rs 5,158.14 crore. Stock of the bank closed 1.43 per cent up at Rs 60.40 apiece on the BSE.