Care Ratings Ltd assigns "AA+/Stable" rating to Bank of India's Tier 2 bonds

New Delhi: State-owned Bank of India informed in a regulatory filing on Tuesday that the rating agency, Care Ratings Limited has assigned AA+/Stable to its Tier II bonds worth Rs 3,000 crores. The rating assigned by Care Ratings Limited of AA+/Stable to Tier II bonds worth Rs 3,000 crores indicates a high degree of creditworthiness and a stable outlook for the issuer of the bonds.

What does the rating indicate?

The rating "AA+" signifies a strong capacity of the issuer to meet its financial obligations. It suggests a very low credit risk associated with the bonds. This rating is just below the highest rating of "AAA," indicating a slightly lower level of safety but still reflecting a high-quality investment grade.

The "Stable" outlook suggests that the rating agency expects the issuer's financial performance and creditworthiness to remain steady and predictable in the foreseeable future. It indicates that the issuer is likely to maintain its current credit quality and meet its obligations on time.

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