Crisil Gives Low Credit Risk Rating to Allahabad Bank's Bond issue

New Delhi: Rating agency Crisil has assigned a "low credit risk with negative outlook" rating to Allahabad Bank's proposed Rs 500 crore tier-II bonds to be raised this fiscal.

"Crisil Ratings has assigned AA+/Negative (double A plus with negative outlook) rating to the bank's proposed Basel-III compliant tier-2 bonds aggregating Rs 500 crore," Allahabad Bank said in a regulatory filing to the BSE.

Instruments with AA+ ratings are considered to have high degree of safety regarding timely servicing of financial obligations and carry very low credit risk.

In November, the bank had said it will raise Basel-III compliant tier-II bonds up to Rs 500 crore through private placement in one or more tranches during 2014-15.

Shares of Allahabad Bank closed 1.68 per cent lower at Rs 129 apiece on the BSE today.