Fitch affirms State Bank of India

Fitch Ratings said it affirmed State Bank of India's long-term foreign-currency issuer default rating at BBB-, short-term rating at F3, national long-term rating at AAA(ind), individual rating at C, support rating at 2, €100 million bond at BBB-, $500 million bonds rated at BBB- and Rs. 25 billion subordinated debt at AAA(ind).

The outlook is stable.

Fitch also said the bank's Rs.9.4 billion subordinated debt issue has been paid in full.

The ratings reflect the bank's improved asset quality and solvency indicators, together with its quasi-sovereign risk status as India's largest bank with huge systemic importance, Fitch said.

The bank's support rating reflects that systemic importance and its position as India's largest bank with a market share of about 20% of banking assets, the agency said. Fitch said it believes that confidence in the Indian banking system would collapse if the bank fails, so government support is virtually assured.

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