CRISIL reaffirms credit ratings of Federal Bank; outlook revised to 'Positive'

Federal Bank has informed to the exchanges regarding re-affirmation of credit rating and revision of outlook by CRISIL.

CRISIL Ratings has re-affirmed ‘CRISIL AA+’ rating to ₹1,00,000cr fixed deposit programme of the Federal Bank and revised outlook to “Positive” from “stable”. 

Further, the ratings on the short-term fixed deposits and ₹15000cr Certificate of Deposits have been re-affirmed at ‘CRISILA1+’.

As per the CRISIL report, the revision in outlook is driven by expectation of sustained improvement in earnings profile and asset quality on a sequential basis, while capitalisation metrics remain healthy.

CRISIL Ratings has combined the business and financial risk profiles of Federal Bank and its subsidiaries and associate concerns on a proportionate basis.