The FINANCIAL — Mumbai-05 September 2011: Fitch Ratings has affirmed Banc of America Securities (India) Pvt. Ltd.'s (BASIL) National Short-Term rating at 'Fitch A1+(ind)'.
The agency has also affirmed BASIL's INR2bn short-term debt programme at 'Fitch A1+(ind)'.
BASIL's ratings are based on Fitch's expectations of continued strong support from its ultimate parent, Bank of America Corporation (BAC, 'A+'/Rating Watch Negative), which wholly owns BASIL through its subsidiary – Bank of America N.A. (BANA; 'A+'/Rating Watch Negative). Recently Fitch affirmed BAC's and BANA's 'B/C' Individual Ratings and assigned them 'a-' Viability Ratings.
The ratings are further supported by BASIL's strong operational integration within BANA India branch, including the operating infrastructure and management resources provided by the latter. Notwithstanding BASIL's small scale of operations and the evolving strategy of BAC for this entity, Fitch believes that parental support for BASIL would be forthcoming, in the event of need.
Any evidence of weakening support from BAC, or a sharp downgrade of BAC's Long-Term IDR may lead to a downgrade of BASIL's ratings.
BASIL is a non-deposit taking non-banking finance company. Formerly a primary dealer (PD) in government securities, its primary business is now investing in debt market instruments. BASIL's PD business merged with BANA in August 2006.
Discussion about this post