S&P: State Bank of India notes B+, BB

S&P said it assigned a B+ long-term issue rating to the additional tier 1 notes and BB long-term issue rating to the tier 2 notes issued by State Bank of India.

The notes were issued under the bank’s $10 billion medium-term notes program.

The rating on the additional tier 1 notes is four notches lower than the bank's stand-alone credit profile of BBB-, S&P said.

The notching reflects one notch for subordination risk, two notches for their tier 1 regulatory capital status and interest cancellation discretion, and one notch because the notes contain a contractual write-down clause, the agency said.

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