Fitch Rates Export
Fitch Ratings - Singapore/Mumbai - 04 Jan 2021: Fitch Ratings has assigned Export-Import Bank of India's (EXIM, BBB-/Negative) proposed senior unsecured notes an expected rating of 'BBB-(EXP)'. The proposed notes will constitute EXIM's direct, unconditional, unsubordinated and unsecured obligations and will at all times rank pari passu among themselves and with all of EXIM's other unsubordinated and unsecured obligations. The proposed notes are to be issued by EXIM's Head Office in India.
The final rating is subject to the receipt of final documentation conforming to information already received.
KEY RATING DRIVERS
The proposed notes are rated at the same level as EXIM's Issuer Default Rating (IDR), in accordance with Fitch's criteria.
EXIM's Long-Term IDR is driven by its Support Rating (SR) of '2' and Support Rating Floor (SRF) of 'BBB-', and is the same as India's sovereign rating (BBB-/Negative). EXIM's SR reflects Fitch's expectation of a high probability of extraordinary state support to the bank, in times of need, subject to the sovereign's ability to support. This view stems from EXIM's high strategic and systemic importance due to EXIM's unique policy role, strong government linkages and the state's 100% ownership in EXIM under the bank's founding act of parliament.
For more details on EXIM's ratings and credit profile, see "Fitch Affirms Export-Import Bank of India at 'BBB-'; Outlook Negative", dated 6 October 2020, at www.fitchratings.com/site/pr/10138638.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:
- EXIM's senior debt ratings are broadly sensitive to the same considerations that affect its IDR. Positive rating action on the IDR will result in a similar change in the rating on the proposed notes.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
- A negative change in the IDR will result in a similar change in the proposed notes' rating.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit
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