Strong business position supported by strong domestic franchise and good diversification in India. Above-average funding and strong liquidity. Moderate capitalization and earnings. Moderate risk position. The negative outlook on State Bank of India (SBI) reflects the outlook on the sovereign credit rating on India (unsolicited rating: BBB-/Negative/A-3). The rating on SBI will move in tandem with the sovereign rating. Standard&Poor's Ratings Services does not rate Indian banks above the sovereign rating because of the direct and indirect influence the sovereign in distress would have on a bank's operations, including its ability to service foreign currency obligations. We will lower the rating on SBI if we downgrade the sovereign. We may also lower the rating if the bank's 'bbb-'
