Fitch rates State Bank of India notes BBB-

Fitch Ratings said it assigned an expected rating of BBB- to State Bank of India's proposed senior unsecured debt.

The notes will constitute direct, unconditional, unsubordinated and unsecured obligations of the issuer and will rank pari passu among themselves and with all other unsubordinated and unsecured obligations of the bank, Fitch said.

The tenor of the issue is expected to be about five years and the notes are to be issued by the bank’s London branch, the agency said.

The senior unsecured instruments are rated at the same level as the bank's issuer default rating according to the agency’s criteria.

The bank’s issuer default rating of BBB- is driven by its support rating floor of BBB-, which is at the same level as its viability rating of BBB-. This implies that the bank's standalone credit strength also underpins the issuer default rating, Fitch said.

The ratings also reflect the expected high probability of extraordinary support from the government of India, if necessary, given the bank's very high systemic importance and quasi-sovereign status, the agency said.

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