Federal Bank secures investment-grade rating from S&P Global; stock in focus

Private sector lender Federal Bank is in focus today after S&P Global Ratings assigned it its first-ever international issuer credit rating, placing the bank in the global investment-grade category. The rating agency assigned Federal Bank a long-term issuer credit rating of BBB- with a Stable outlook and a short-term issuer credit rating of A-3, marking the lender's inaugural international issuer rating from S&P Global Ratings.

According to the bank, the investment-grade rating reflects the strength of its franchise, prudent risk management practices, healthy capital position, diversified funding base, strong liquidity profile and consistent financial performance over the years.

Federal Bank said the rating is expected to improve its visibility among international investors and global financial institutions, while reinforcing confidence among customers, counterparties and other stakeholders.

Commenting on the development, Managing Director and Chief Executive Officer K V S Manian said the inaugural investment-grade rating marks a significant milestone in the bank's growth journey and underscores the resilience of its business model.

He added that the rating acknowledges the bank's disciplined approach to growth, governance and risk management, and comes at a crucial stage as Federal Bank continues to focus on delivering superior customer experience, achieving sustainable growth and creating long-term value while maintaining strong financial fundamentals.

The lender said it has consistently strengthened its balance sheet by improving the quality of its liabilities, maintaining robust capital buffers, enhancing profitability and making continued investments in technology and customer experience. It added that the investment-grade rating reflects the progress it has made in building a resilient, well-capitalised and sustainable banking franchise.