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CRISIL has upgraded Federal Bank's long-term fixed deposit rating to AAA/Stable, impacting ₹1 lakh crore of deposits. The short-term rating remains unchanged. Investors should keep an eye on the Federal Bank share price in upcoming sessions.
CRISIL Ratings has upgraded the long-term fixed deposit rating of Federal Bank to ‘AAA/Stable’ from ‘AA+/Positive’, reflecting the bank’s improved creditworthiness and operational stability. This upgrade directly impacts ₹1 lakh crore worth of Federal Bank’s fixed deposits, signifying a strong capacity to meet financial commitments. The short-term rating, meanwhile, remains unchanged at CRISIL A1+, maintaining the bank's stable position in short-term instruments.
CRISIL has reaffirmed its short-term rating for Federal Bank’s ₹15,000 crore certificates of deposits at CRISIL A1+. This stability highlights the bank's ability to meet short-term obligations without any significant concerns. Despite a limited rise in stock prices during the latest trading session, investors should monitor Federal Bank share price as this upgrade is likely to generate market interest in the coming days.
The upgraded rating provides assurance to fixed deposit holders and potential investors regarding the bank’s financial health. CRISIL’s AAA/Stable rating implies that the Federal Bank exhibits minimal risk in fulfilling its long-term financial commitments. This is a positive signal for those considering investing in the bank’s fixed deposits, as it indicates a secure environment for their investments.
In addition to Federal Bank, CRISIL also upgraded the ratings of Fedbank Financial Services, a subsidiary of Federal Bank, and Yuken India. While Fedbank Financial Services saw an improvement in its non-convertible debenture ratings, its commercial paper rating remains unchanged. On the other hand, Yuken India’s long-term bank facility rating was upgraded by CARE Ratings to CARE BBB+ Stable, while its short-term bank facility rating was maintained at CARE A3+.
Federal Bank’s rating upgrade is a significant development, boosting investor confidence in the bank’s stability. With both long-term and short-term ratings reaffirmed or improved, the Federal Bank appears poised for enhanced market performance. Investors are advised to keep a close watch on Federal Bank share prices in the upcoming trading sessions.
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