Federal Bank Receives Inaugural BBB

Current Context: Federal Bank has become the first Indian private sector bank to receive an inaugural 'BBB–' long-term issuer credit rating from S&P Global Ratings, placing it in the investment-grade category. The rating reflects the bank's strong financial profile, stable asset quality, sound capital position and resilient business performance.

Key Highlights

• Federal Bank received its first-ever 'BBB–' long-term issuer credit rating from S&P Global Ratings.
• The rating falls under the investment-grade category, indicating a moderate credit risk and a stable financial outlook.
• S&P cited the bank's strong capital adequacy, healthy asset quality, stable earnings and diversified loan portfolio as key strengths.
• The investment-grade rating enhances the bank's credibility in international financial markets and improves its ability to raise overseas funds at competitive rates.

Question: 

Q1. Which Indian private sector bank became the first to receive an inaugural 'BBB–' long-term issuer credit rating from S&P Global Ratings?

a) IndusInd Bank

b) Yes Bank

c) Federal Bank

d) IDFC FIRST Bank

Answer: c) Federal Bank became the first Indian private sector bank to receive an inaugural 'BBB–' long-term issuer credit rating from S&P Global Ratings.