India Ratings assigns PNB’s AT1 Bonds ‘IND AA+/Stable', affirms existing ratings

New Delhi: State-owned Punjab National Bank (PNB) stated in a regulatory filing that it has received ratings from India Ratings on Friday. The ratings agency also affirmed ratings for varied instruments. The filing stated that the bank has received 'IND AAA/ Stable/IND A1+' rating for long- term or short-term issuer.

The bank has received 'IND AA+/Stable' for AT1 bonds, said the filing. It has received 'IND AAA/Stable' rating for its fixed deposits while, its Certificate of Deposits received rating 'IND A1+'. It also reported that Basel III Tier 2 bonds received rating 'IND AAA/Stable'.

The filing said that the bank has received 'IND AA+/Stable' rating for its AT1 bonds and 'IND AAA/Stable' rating for senior infrastructure bonds.

Adding to this, the filing also reflected on the key rating drivers, rating sensitivities and ESG issues. The filing said that "high systematic importance, capital buffers adequately placed, strong low-cost liability franchise, liquidity indicator, increasing pre-provisioning operating profit and asset quality challenges" were the key rating drivers.

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