New Delhi, March 11 -- Fitch Ratings has affirmed the Long-Term Issuer Default Rating (IDR) of Union Bank of India at 'BBB-' and its outlook as 'Stable'.

Fitch has also upgraded Union's Viability Rating (VR) to 'bb-' from 'b+', and affirmed its Government Support Rating (GSR) of 'bbb-'.

"The VR (viability rating) upgrade to 'bb-' is supported by ongoing improvements in Union's risk profile, which are also reflected in its financial performance in recent years," Fitch said in a statement Tuesday.

Fitch said growth in Indian economy will support Indian banks' ability to sustain profitable business in the medium term, if risks are effectively managed.

"Union's business profile score reflects its large franchise as India's fifth-largest s...