Moody’s rating downgrade ‘unsolicited’: Central Bank of India

New Delhi: Pubic sector Central Bank of India on July 26 said a downgrade rating by Moody’s Investor Service on the lender has been “unsolicited” as the former didn’t approach for any such rating.

Earlier this week on Monday, the global rating agency Moody’s had downgraded ratings on Central Bank of India and Indian Overseas Bank (IOB) to Ba3 from Ba1, while affirming ratings on nine peer banks including Bank of India, Punjab National Bank and Axis Bank, at Baa3/Prime-3.

Central Bank said there is no diminution in government support to the bank post the ratings downgrade. “We would like to inform that the bank also came to know the news from releases/media reports.

We inform that the captioned rating was unsolicited and Central Bank of India has not approached Moody’s Investor Service for any such rating,” the bank said in a regulatory filing.

The stock exchanges had sought clarity from the bank and few of its peers on July 25 on the said news item.

“We do not see any diminution in government support as apprehended in the rating report, on account on which the rating has been downgraded,” it said further.

Central Bank of India said it has been fully complying with applicable provisions of the Regulation 30 of Sebi on listing and disclosure requirements in its true letter and spirit.

“All events, information, developments which have bearing on the performance/operations of the bank as well as price sensitive information are submitted forthwith to stock exchanges,” it said in the filing.

Stock of the bank closed 0.16 per cent up at Rs 91.65 on BSE.