State Bank of India's Proposed Additional Tier 1 Notes Under Its MTN Program Assigned 'B+' Rating

SINGAPORE (S&P Global Ratings) Sept. 14, 2016--S&P Global Ratings today said it has assigned its 'B+' long-term issue rating to a proposed issue of U.S.-dollar-denominated additional Tier 1 notes by State Bank of India (SBI: BBB-/Stable/A-3) under its US$10 billion medium-term note (MTN) program. The rating on the proposed 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; and One notch because the notes contain a contractual write-down clause. Once the notes have been issued and are confirmed as part of SBI's Tier 1 capital, we

...SINGAPORE (S&P Global Ratings) Sept. 14, 2016--S&P Global Ratings today said it has assigned its 'B+' long-term issue rating to a proposed issue of U.S.-dollar-denominated additional Tier 1 notes by State Bank of India (SBI: ###-/Stable/A-3) under its US$10 billion medium-term note (MTN) program. The rating on the proposed 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; and + One notch because the notes contain a contractual write-down clause. Once the notes have been issued and are confirmed as part of SBI's Tier 1 capital, we expect to assess them as having intermediate equity content under our criteria. This reflects our view that the notes can absorb losses on a going-concern basis through discretionary coupon cancellation, are perpetual, and have no coupon step-up....

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