OREANDA-NEWS. Fitch Ratings has assigned India-based IDBI Bank Ltd's (BBB-/Stable) USD350m senior unsecured notes due November 2020 a final rating of 'BBB-'.

This follows the completion of the securities issue, as well as the receipt of final documents conforming to information previously received. The final rating is the same as the expected rating assigned on 22 November 2015.

The notes will constitute direct, unconditional, unsubordinated and unsecured obligations of the issuer. They will at all times rank pari passu among themselves and with all other unsubordinated and unsecured obligations of IDBI Bank.

The tenor of the issue is five years and the notes are issued by IDBI Bank's Dubai International Financial Centre branch.

KEY RATING DRIVERS - SENIOR DEBT

The senior unsecured instruments are rated at the same level as the bank's Issuer Default Rating (IDR), in accordance with Fitch's criteria.

IDBI Bank's IDR is driven by its Support Rating Floor (SRF) of 'BBB-', which is higher than its Viability Rating of 'bb', and reflects Fitch's expectation of a high probability of extraordinary support from the government of India, if necessary.

IDBI's systemic importance is high, which is driven by its relatively large size and asset share, the government's 76.5% stake, and IDBI's role as a strategic shareholder in setting up vital financial institutions and policy banks. IDBI, along with other state banks, has also received regular capital injections from the government.

RATING SENSITIVITIES - SENIOR DEBT

Any change in the factors underpinning IDBI Bank's systemic importance will warrant a re-assessment of the SRF, which currently drives the IDR. Any change in IDR will also have an impact on the securities' rating.

IDBI Bank's other ratings are unchanged and are as follows:
- Long-Term IDR at 'BBB-'; Outlook Stable
- Short-Term IDR at 'F3'
- Viability Rating at 'bb'
- Support Rating at '2'
- Support Rating Floor at 'BBB-'
- USD5bn medium-term note programme at 'BBB-'
- USD2bn senior unsecured notes at 'BBB-'