SINGAPORE (Standard&Poor's) Feb. 8, 2007--Standard&Poor's Ratings Services today assigned its 'BBB-' rating to the proposed floating rate notes and 'BB' rating to the proposed Hybrid Tier I perpetual notes to be issued by State Bank of India (SBI; BBB-/Stable/A-3), India's largest bank. The total issue amount for both the instruments will be US$700 million. The rating differential between the floating rate notes and the Hybrid Tier I perpetual notes reflects the junior subordinated nature and embedded interest deferral feature of the latter. The floating rate notes will have a tenor of five years, and will have no call or put option. The Hybrid Tier I perpetual notes will be perpetual notes with a call option 10
