Fitch Ratings has placed
A full list of rating actions is below.
These actions follow the announcement that
The completion of the acquisition is expected in 1Q25 once regulatory approval has been obtained. Fitch expects to resolve the Rating Watch upon closing of the transaction. The resolution of the RWP could take longer than six months, which is more than Fitch's normal Rating Watch resolution horizon.
We do not expect the acquisition to have an immediate significant impact on HAL's standalone credit profile. Therefore, its Viability Rating (VR) and Government Support Rating (GSR) are unaffected by this rating action.
Key Rating Drivers
Shareholder Support Likely: We expect to assign HAL an SSR once the acquisition is completed to reflect our view of potential shareholder support from
Integration Risks: We believe that execution risks will be moderate, in view of HAL's smaller size compared with
Short-Term IDR: HAL's Short-Term IDR has been placed on RWP to reflect that the acquisition would result in an upgrade of the Short-Term IDR to reflect support from its new owner.
The key rating drivers of HAL's VR are outlined in our rating action commentary published on
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
The ratings are on RWP; therefore, a negative rating action is unlikely. The IDRs would likely be affirmed and removed from RWP if the announced acquisition does not proceed.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
We expect to upgrade HAL's IDRs on completion of the acquisition and to assign the bank an SSR. We would likely equalise HAL's Long-Term IDR with that of
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
Public Ratings with Credit Linkage to other ratings
The RWP on HAL reflects our view that its ratings could benefit from support from
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.
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