IOB updates Moody's rating

The International Credit Rating Agency, Moody's Investor Service, has affirmed their local and foreign currency deposit rating Ba2 and Baseline Credit assessment (BCAs) at b2. The rating outlook is maintained as STABLE.

Moody's expect the asset quality and profitability pressures due to the coronavirus outbreak will be largely mitigated by improvements in the bank's credit profile over the past year. As such Moody's expect the bank's BCAs and rating remain STABLE at the current level. As a result, Moody's has affirmed IOB's ratings and BCA with STABLE outlook.

The counterparty risk rating (CRR) and counterparty risk assessment (CRA) of the Bank is downgraded by Moody's to Ba2. However, the rating description is some for Ba1, Ba2 and Ba3.

Moody's in its rating rationale has mentioned that Economic disruption caused by the Coronavirus outbreak and downgrade of the Sovereign rating are the key driver for this rating action.

Shares of INDIAN OVERSEAS BANK was last trading in BSE at Rs.9.45 as compared to the previous close of Rs. 7.95. The total number of shares traded during the day was 1796997 in over 1674 trades.

The stock hit an intraday high of Rs. 9.54 and intraday low of 8.37. The net turnover during the day was Rs. 16809386.

Source : Equity Bulls

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