Moody's Investors Service has changed the outlook for the long-term foreign currency deposit ratings of a number of Indian banks -- currently rated Ba2 -- from 'negative' to 'stable' for India.

The banks affected are: Bank of Baroda, Bank of India, Punjab National Bank, State Bank of India and Union Bank of India.

• Moody's upgrades India rating to Baa3
  Fitch upgrades India rating to BB+

According to a Moody's statement, the current ratings are all placed at the corresponding FC deposit rating ceiling for such deposits in India. For most of the banks this is based on their stand-alone financial strength, while for the weaker public-sector banks government support is imputed to the ratings.

Moreover, Moody's has upgraded to Baa3 from Ba1 the rating on the $100 million global bond maturing 2009 of Power Finance Corporation and the $150 million eurobonds maturing 2004 of Industrial Development Bank of India as well as the foreign currency issuer rating of IFCI Ltd, subsequent to an earlier similar rating action on India's foreign currency debt ceiling.

Moody's notes that these ratings are all closely linked to India's foreign ratings, given the government ownership and the importance of these financial institutions. Stable outlooks have been assigned to all three ratings.