S&P awarded 'BBB' credit rating to Bank or Maharashtra, signals that increase stability

S&P Global Ratings on September 24 awarded ‘BBB’ long-term and ‘A-2’ short-term credit rating to Bank of Maharashtra (BOM), which underlines the growing stability and appeal to investors. “Our ratings reflect extraordinary support from the Government of India if necessary. The long -term rating on bomb is a notch above our assessment of its independent credit profile (SACP) as ‘BBB-‘. We see a very high probability that the government would provide the bank with a timely and sufficient extraordinary support in the case of financial distress. Too, reflects confidence in the bank’s ability to fulfill its financial obligations. expect the bank’s risk -adjusted capital (RAC) ratio to strengthen to about 10.5% -11% over the next two years, from 10% (calibrated for an economic risk score of ‘5’ and our ‘BBB’ long -term sovereign rating on India) from 31 March, 2025. Rationale behind the ratings. Upside down and disadvantage -scenario explaining the disadvantage -scenario, the agency said it could downgrade bomb if it lowered the sovereign ratings on India, or if he reviewed the sacp’s assessment for the bank. “We can lower the SACP once if the bank RAC ratio falls under 10%sustainably. This scenario can occur if the above-average credit growth is not sufficiently supported by timely capital increases,” it says. While S&P noted that a rating upgrade looks unlikely over the next two years, it could upgrade bomb if it increases the sovereign ratings on India and revises the bank’s SACP. Shares of Bank of Maharashtra established a £ 56.34 apiece on the BSE, 1.47% lower than its previous closure, while the benchmark Sensex closed 386.47 points or 0.47% lower at 81,715,63 on September 24.