New Delhi: State-owned UCO Bank said in a regulatory filing on Thursday that its proposed BASEL III Additional Tier I bond worth Rs 1,000 crores has been assigned a new rating by the Infomerics. The bond was assigned the long-term rating 'AA-/Stable' by the credit rating agency.
Defining the rationale behind the rating, the agency said in a statement, "The assignment of ratings to the Proposed BASEL III Compliant Additional Tier I bonds of UCO Bank has taken into consideration sovereign ownership with continued support, comfortable capitalisation and resource profile. However, the ratings are constrained by average asset quality and geographically concentrated operations." The agency also said that these bonds are highly complex in nature.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)