Fitch Rates IDBI Bank's Proposed Senior Debt 'BBB-(EXP)'

Fitch Ratings-Singapore/Mumbai-22 November 2015: Fitch Ratings has assigned India-based IDBI Bank Ltd's (BBB-/Stable) proposed senior unsecured debt an expected rating of 'BBB-(EXP)'.The notes will constitute direct, unconditional, unsubordinated and unsecured obligations of the issuer. They will at all times rank pari passu among themselves and with all other unsubordinated and unsecured obligations of IDBI Bank.The tenor of the issue is expected to be around three to five years and the notes are to be issued by IDBI Bank's Dubai International Financial Centre branch.The final rating is subject to the receipt of final documentation conforming to information already received. KEY RATING DRIVERS - SENIOR DEBTThe senior unsecured instruments are rated at the same level as the bank's Issuer Default Rating (IDR), in accordance with Fitch's criteria. IDBI Bank's IDR is driven by its Support Rating Floor (SRF) of 'BBB-', which is higher than its Viability Rating of 'bb', and reflects Fitch's expectation of a high probability of extraordinary support from the government of India, if necessary.IDBI's systemic importance is high, which is driven by its relatively large size and asset share, the government's 76.5% stake, and IDBI's role as a strategic shareholder in setting up vital financial institutions and policy banks. IDBI, along with other state banks, has also received regular capital injections from the government.RATING SENSITIVITIES - SENIOR DEBTAny change in the factors underpinning IDBI Bank's systemic importance will warrant a re-assessment of the SRF, which currently drives the IDR. Any change in IDR will also have an impact on the securities' rating.IDBI Bank's other ratings are unchanged and are as follows:- Long-Term IDR at 'BBB-'; Outlook Stable- Short-Term IDR at 'F3'- Viability Rating at 'bb'- Support Rating at '2'- Support Rating Floor at 'BBB-'DisclaimerALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS.IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.