State Bank of India's Additional Tier 1 Notes Under Its MTN Program Assigned 'B+' Rating; Tier 2 Notes Rated 'BB'

SINGAPORE (S&P Global Ratings) Sept. 8, 2016--S&P Global Ratings today assigned its 'B+' long-term issue rating to the additional Tier 1 notes and 'BB' long-term issue rating to the Tier 2 notes under the US$10 billion medium-term notes (MTN) program by State Bank of India (SBI: BBB-/Stable/A-3). The issue ratings are subject to our review of the final issuance documentation. The rating on the additional Tier 1 notes is four notches lower than SBI's stand-alone credit profile (SACP) of 'bbb-' and reflects: One notch for subordination risk; Two notches because we expect the notes to have Tier 1 regulatory capital status and full discretion to cancel interest; One notch because the notes contain a contractual write-down clause; a write-down would

...SINGAPORE (S&P Global Ratings) Sept. 8, 2016--S&P Global Ratings today assigned its 'B+' long-term issue rating to the additional Tier 1 notes and '##' long-term issue rating to the Tier 2 notes under the US$10 billion medium-term notes (MTN) program by State Bank of India (SBI: ###-/Stable/A-3). The issue ratings are subject to our review of the final issuance documentation. The rating on the additional Tier 1 notes is four notches lower than SBI's stand-alone credit profile (SACP) of '###-' and reflects: + One notch for subordination risk; + Two notches because we expect the notes to have Tier 1 regulatory capital status and full discretion to cancel interest; + One notch because the notes contain a contractual write-down clause; a write-down would occur at point of non-viability. A write-down may also happen if the bank's common equity Tier 1 ratio falls below 5.5% at any time before March 31, 2019, or below 6.125% from that date on, which we view as a non-viability trigger. Once the...

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