Fitch Ratings on Friday affirmed the Export-Import Bank of India's rating with a stable outlook, reflecting its high strategic importance to the state.
EXIM's Long-Term Issuer Default Rating and outlook are at the same level as India's sovereign rating. The agency has also affirmed the bank's Government Support Rating at 'bbb-'.
"This reflects EXIM's high strategic importance to the state, which stems from its long-term policy role, its status as a policy institution, 100% state ownership and significant protection for EXIM's creditors due to access to liquidity from the authorities during periods of crisis," Fitch said in a statement.
Fitch views the government's 100 per cent ownership of EXIM as strategic and permanent.
"EXIM's longstanding policy role as the principal financial institution that finances and promotes India's international trade is driven by its founding act. EXIM extends lines of credit to less developed countries, underpinning its close linkages to the sovereign," Fitch said.
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