Live news , top stories, corporate news, company news, sector news, economy news, results analysis news, ceo interviews, fund manager interview, advisor interview, market news, bazaar talk, hot stocks news, ipo news, commodities news, mutual fund news, insurance news, news wire
19 August, 2017 14:48 IST
ICRA downgrades bond programmes of Oriental bank of Commerce
Source: IRIS | 31 May, 2017, 03.59PM
Comments  |  Post Comment

ICRA has downgraded the rating for the Rs 12 billion  (reduced from Rs 17 billion) Lower Tier II bonds programme of Oriental Bank of Commerce (OBC) to [ICRA]AA- (pronounced ICRA double A minus) from [ICRA]AA (pronounced ICRA double A)†. ICRA has also downgraded the rating for the Rs 5 billion Upper Tier II bonds of OBC to [ICRA]A+ (pronounced ICRA A plus) from [ICRA]AA-.

ICRA has withdrawn the rating assigned earlier to the Rs 5 billion Lower Tier-II bonds as there is no amount outstanding against the rated instrument and these have been redeemed. The withdrawal is at the request of the bank.
 
ICRA has also downgraded the rating for OBC's (Q,N,C,F)* Rs 30 billion Basel III compliant Tier II bonds to [ICRA]AA- (hyb) (pronounced ICRA double AA minus hybrid) from [ICRA]AA (hyb) (pronounced ICRA double AA hybrid); and the ratings for the Rs. 2,000 crore Additional Tier-I bonds to [ICRA]A (hyb) (pronounced ICRA A hybrid) from [ICRA]A+ (hyb) (pronounced ICRA A plus).
 
The letters ''hyb'' in parenthesis suffixed to a rating symbol stand for ''hybrid'', indicating that the rated instrument is a hybrid subordinated instrument with equity-like loss-absorption features; such features may translate into higher levels of rating transition and loss-severity vis-à-vis conventional debt instruments. The rated Tier-II bonds are expected to absorb losses once the ''Point of Non Viability'' trigger is invoked. The outlook on the long term ratings is Negative.

Shares of the bank declined Rs 1.1, or 0.73%, to trade at Rs 149.15. The total volume of shares traded was 316,827 at the BSE (3.49 p.m., Wednesday).

Comments Post comment 
 Post Comment
Name Email
Comment
Security Code type    into this box
Related Articles
Vishal Sikka resigns as MD & CEO of Infosys - 18-Aug-2017 12:12
HDFC Bank revises interest rates on saving bank accounts - 18-Aug-2017 11:42
Srei Equipment Finance plans to dilute upto 25% of capital - 18-Aug-2017 11:36
Power Grid to invest Rs 19.31 bn for power transmission related project - 18-Aug-2017 11:30
Infosys in association with ATP unveils new PlayerZone - 18-Aug-2017 11:26
Raymond acquires Ansel's stake in JV entity 'JK Ansell' - 18-Aug-2017 10:24
Piramal Enterprises' arm acquires 100% stake in Context Matters - 17-Aug-2017 10:03
Karnataka Bank ventures into social media presence - 17-Aug-2017 10:00
L&T to divest entire stake in L&T Cutting Tools for Rs 1.74 bn - 17-Aug-2017 09:46
PTC India Financial Services inks MoU with IIFCL Projects - 17-Aug-2017 09:38
EESL and IOCL, BPCL & HPCL sign MOUs for distribution of energy efficient appliances - 17-Aug-2017 08:46
more...
Home  |   Shares  |   F&O  |   Mutual Funds  |   Loans  |   Insurance  |   News Centre
Wealth Tracker  |   Newsletters  |   Tax Corner  |   NRI Centre  |   Advertise
© All rights reserved. IRIS Business Services Limited
A Disclaimer