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MUMBAI : Global ratings agency Fitch revised outlook on long-term issuer default ratings (IDR) of financial sector entities including 9 banks from “Negative" to “Stable" on Wednesday, following an upgrade in the outlook on India's sovereign rating from “BBB-" to “Stable" last week.  

State Bank of India, Bank of Baroda (BOB) and its subsidiary in Newland, Bank of India, Canara Bank, Punjab National Bank, ICICI Bank and Axis Bank and Export and Import Bank of India are the entities whose entities have been upgraded. 

The IDRs are based on Fitch's assessment of high to moderate probability of extraordinary state support for these banks. This takes into account assessment of the sovereign's ability and propensity to provide extraordinary support, it added. 

Fitch has also affirmed the Government Support Ratings (GSRs) for seven of them and the Shareholder Support Rating (SSR) on Bank of Baroda (New Zealand) Limited. 

Fitch's revised outlook on Indian sovereign to “Stable" from due to diminished downside risks to country’s medium-term growth, which is underscored by its rapid economic recovery and easing financial-sector weaknesses.

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