×
Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday
×

DCB’s long-term rating cut to BBB by Fitch

DCB’s long-term rating cut to BBB by Fitch
Comment E-mail Print Share
First Published: Thu, Feb 26 2009. 10 49 PM IST
Updated: Thu, Feb 26 2009. 10 49 PM IST
Mumbai: Fitch Ratings on Thursday downgraded Development Credit Bank Ltd’s national long-term rating to BBB from A-, citing the bank’s high exposure to “the vulnerable retail and small business segment” and increasing credit losses.
The agency said in a statement that it expects DCB’s financial profile to deteriorate further and its core capital to be depleted.
Fitch lowered its outlook on the bank’s rating to negative from stable. “A sustainable turnaround in performance would be challenging given an increasingly difficult operating environment and constraints in developing its franchise,” Fitch said.
The agency also downgraded DCB’s Rs100 crore lower tier-II subordinated debt programme rating to BBB from A-. On Monday, ratings agency Crisil Ltd had downgraded DCB’s Rs1,500 crore certificates of deposit programme to P1 from P1+, citing deterioration in the bank’s asset quality in the past three quarters, and on expectations of continued pressure over the medium-term.
Comment E-mail Print Share
First Published: Thu, Feb 26 2009. 10 49 PM IST