Did S&P Global Just Upgrade Credit Ratings for 10 Indian Financial Institutions?
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Synopsis
S&P Global Ratings has made headlines by upgrading the credit ratings of 10 major financial institutions in India, including leading banks and NBFCs. This move not only reflects the growing confidence in India's economy but also marks a significant milestone in the country's financial landscape.
Key Takeaways
- S&P Global Ratings upgraded the credit ratings of 10 financial institutions in India.
- The upgrade reflects India's robust economic growth.
- Seven banks and three NBFCs are included in the upgrade.
- Previous ratings were improved from “BBB-/Positive/A-3” to “BBB/Stable/A-2”.
- The upgrade marks the first sovereign rating increase for India in 18 years.
New Delhi, Aug 16 (NationPress) In a remarkable turn of events, S&P Global Ratings has elevated the long-term issuer credit ratings for seven Indian banks and three non-banking financial companies (NBFCs).
The banks included in this upgrade are State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, Union Bank of India, Indian Bank, and Kotak Mahindra Bank. The non-banking financial companies recognized are Bajaj Finance, Tata Capital, and L&T Finance.
The credit ratings for these ten institutions have been raised from “BBB-/Positive/A-3” to “BBB/Stable/A-2”.
This upgrade follows the global ratings agency's decision to increase the sovereign credit rating for India, marking the first sovereign upgrade by S&P in 18 years, with the last occurrence in 2007 when India achieved an investment grade of BBB-. In May 2024, the agency also changed its outlook on India from ‘Stable’ to ‘Positive’.
S&P Global anticipates that India’s financial institutions will continue to thrive due to the country's robust economic growth trajectory. The agency expects Indian banks to uphold solid asset quality, satisfactory profitability, and improved capital adequacy over the next 12-24 months, despite some areas of concern.
In addition to upgrading the long-term issuer credit ratings for these ten financial entities, S&P Global Ratings also revised upward its assessment of the stand-alone credit profiles (SACP) for seven of these institutions – SBI, Axis Bank, Kotak Mahindra Bank, Union Bank of India, Indian Bank, Tata Capital, and L&T Finance.
The ratings assigned to numerous Indian financial institutions are capped by India’s sovereign rating, reflecting the direct and indirect influence the sovereign has on financial operations within the country, as noted by S&P.
Additionally, on Thursday, S&P Global Ratings raised the credit ratings for Oil and Natural Gas Corp. Ltd. (ONGC), Power Grid Corp. of India Ltd., NTPC Ltd., and Tata Power Co. Ltd. to 'BBB' from ‘BBB-' with stable outlooks.
Point of View
It's imperative to recognize this pivotal moment for India's financial sector, as the upgrade by S&P Global Ratings underscores a strengthening economy and improved financial stability. This is a significant step towards enhancing investor confidence and fostering growth across the nation.
NationPress
19/08/2025
Frequently Asked Questions
What financial institutions were upgraded by S&P Global?
S&P Global upgraded the credit ratings of seven banks: State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, Union Bank of India, Indian Bank, and Kotak Mahindra Bank, along with three NBFCs: Bajaj Finance, Tata Capital, and L&T Finance.
What was the previous rating before the upgrade?
The previous ratings were 'BBB-/Positive/A-3' and have been upgraded to 'BBB/Stable/A-2'.
Why was there an upgrade in the credit ratings?
The upgrade follows S&P's decision to raise India's sovereign credit rating, marking the first increase in 18 years, reflecting confidence in India's economic growth.
How will this upgrade impact Indian financial institutions?
The upgrade is expected to bolster investor confidence and support sustained growth in asset quality, profitability, and capitalization for Indian banks.
What other companies had their ratings upgraded by S&P?
Alongside the 10 financial institutions, S&P also raised the ratings of Oil and Natural Gas Corp. Ltd., Power Grid Corp. of India Ltd., NTPC Ltd., and Tata Power Co. Ltd.
