Fitch assigns Ex-Government Support Ratings to Bank of Baroda

New Delhi: State-owned Bank of Baroda said in a regulatory filing on Saturday that, "In line with the Bank Ex-Government Support Ratings Criteria, Bank of Baroda has been assigned a Long-Term Foreign-Currency IDR (xgs) at the level of their Viability Ratings (VRs)."

"The Long-Term Foreign-Currency IDRs (xgs) of the Bank of Baroda (New Zealand) Limited have been assigned at the higher of their VRs (where assigned) and the rating obtained by notching from the parent banks' Long-Term IDRs (xgs) in accordance with the shareholder support notching considerations as outlined in the relevant master criteria," the filing noted.

The filing also stated that "Fitch Ratings has assigned ex-government support 'xgs' ratings to banks in the Asia-Pacific (APAC) region. Ex-government support ratings, where an 'xgs' suffix is added to the corresponding existing rating - for example, 'AAA(xgs)' - have been assigned to banks that are not rated as public-sector policy banks and whose Long-Term Issuer Default Ratings (IDRs) incorporate assumptions of government support."

The Fitch Ratings said in a statement that "the ex-government support ratings exclude assumptions of extraordinary government support from the underlying ratings." Other PSU banks that made to same list include, Bank of India, Canara Bank, PNB, SBI, and Union Bank of India. The statement by the Fitch Ratings also said, "Long-Term Local-Currency IDRs (xgs) have been assigned in line with the Long-Term Foreign-Currency IDRs (xgs) where underlying Long-Term Local-Currency IDRs exist."

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