Ind Ra assigns State Bank of India’s infrastructure bonds 'AAA/Stable' rating

12 Jan 2023 , 11:38 AM

India Ratings  has assigned State Bank of India’s Infrastructure Bonds, ‘IND AAA’/Stable rating. Also, the rating agency affirmed the existing ratings.

Further, the long-term issuer rating has been affirmed at IND AAA with Stable outlook.

According to the rating rationale report, the ratings continue to reflect SBI’s strong franchise with a dominant market share in the Indian banking system, making it high in systemic importance.

The rating of the infrastructure bonds is equated to the bank’s Long-Term Issuer Rating. The rating of AT1 bonds reflects the bank’s ability to service coupons and manage principal write-down risk on its debt capital instruments, the agency said.

To arrive at the rating, Ind-Ra has considered the discretionary component, coupon omission risk and the write-down/conversion risk as key parameters. 

At around 11:47 AM, State Bank of India was trading at Rs593.80 per share lower by 0.46% on the BSE.

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