Fitch Ratings has assigned State Bank of India’s (SBI, BBB-/Stable) proposed senior unsecured debt an expected rating of ‘BBB-(EXP)’.
SBI plans to use the proceeds from the proposed note issue to finance environmentally friendly projects in accordance with the bank’s Green Bond Framework. The notes will constitute SBI’s direct, unconditional, unsubordinated and unsecured obligations and will at all times rank pari passu among themselves and with all of its other unsubordinated and unsecured obligations.
The tenor of the issue is expected to be five years and the notes are to be issued by SBI’s London branch. The final rating is subject to the receipt of final documentation conforming to information already received.
The senior unsecured instruments are rated at the same level as the bank’s Issuer Default Rating (IDR), in accordance with Fitch’s criteria. SBI’s IDR is driven by its Support Rating Floor of ‘BBB-‘, which is higher than its Viability Rating of ‘bb+’. The Support Rating Floor reflects Fitch’s expectation of a very high probability of extraordinary support from India sovereign (BBB-/Stable), if necessary, given the bank’s very high systemic importance and quasi-sovereign status.
SBI’s senior debt ratings are broadly sensitive to the same considerations that affect its IDR. Any change in the IDR will result in a similar change in the rating on the proposed notes.
Source India Info Line