S&P assigns State Bank of India hybrids BBB-

Standard & Poor's said it 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 (BBB-/stable/A-3).

S&P said that the total issue amount for both the instruments will be $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 agency said, noting that the floating-rate notes will have a tenor of five years and will have no call or put option.

The floating rate notes will constitute direct, unconditional, unsubordinated and unsecured obligations of the bank and will rank pari passu with all of the bank's unsecured and unsubordinated obligations and ahead of all subordinated debt issues, S&P said.

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