HDFC Bank has outstanding bonds totaling to approx USD 1.20 bn issued from the Bahrain branch. These bonds have a dual rating from Standard & Poor’s (S&P) of BBB- and Moody’s of Baa3. In February 2016, consequent to a downgrade in the rating of Bahrain, S&P put the Bonds issued by HDFC Bank, Bahrain branch on CreditWatch with Negative implications. The issuer rating however remained unaffected at BBB-
Subsequently, the Bank has modified the existing structure of the bonds. Under the revised structure, if any event materializes thereby restraining the Bank’s ability to service the bonds from Bahrain branch, the Bank will service the bonds from any branch in India or from the Hong Kong branch. Consequent to these modifications, on 19th July 2016, S&P issued a release removing the CreditWatch and re-affirming the long-term issue ratings on the senior unsecured bonds issued by the Bahrain branch of HDFC Bank Ltd at BBB-