Government rejects Fitch ratings

June 23, 2012

Lashing out at global rating agencies for reducing credit outlook of Indian banks, the government held these bodies are fully capitalized and there is nothing to worry about them. Finance Minister Pranab ruled out the Fitch revision enunciating that the rating was based on "older data" as it disregarded recent positive trends.

Fitch modified downward credit rating outlook of 12 financial agencies, including State Bank of India, ICICI bank, Punjab National Bank. Fitch has already cut the credit stance of the India from stable to negative. The list of downgraded entities include 6 PSUs and 2 private banks including Bank of Baroda and its overseas subsidiary Bank of Baroda (New Zealand), Canara Bank, IDBI Bank and Axis Bank, EXIM Bank of India, Hudco, IDFC and Indian Railway Finance Corporation.

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