Rating Reaffirmed: Standard & Poors rates HDFC Bank with best international ratings

17th April, 2020

Standard & Poors (S&P - a renowned Global Rating Agency) has reaffirmed its international rating for HDFC Bank at BBB- / A3 with a Stable outlook for 2020.

S&P has appraised the Bank’s Global Stand-Alone Credit Profile (SACP) at BBB+ which is 2 notches higher than India’s Sovereign Rating. S&P has said and we quote, “Overall, we believe HDFC Bank’s individual creditworthiness is significantly stronger than the average of the Indian Banking Sector, reflected in its SACP of BBB+.” 

As per S&P, the Bank’s rating is capped at the Sovereign Rating of our country and the Bank’s rating will move alongside that of the country.

S&P has further said and we quote, “Outside of a change to the sovereign rating, the bank’s SACP would have to drop by three notches to result in a downgrade, which is highly unlikely over the next two years, in our view.”