Fitch affirms investment grade to State Bank of India
Global rating agency Fitch today affirmed ‘BBB-‘ or investment grade with stable outlook to the country's largest lender State Bank of India.
By ET Bureau | Updated:
NEW DELH: Global rating agency Fitch today affirmed ‘BBB-‘ or investment grade with stable outlook to the country's largest lender State Bank of India. The agency has also affirmed SBI’s Viability Rating (VR) at ‘BBB-‘.
The ratings of SBI are driven by a high probability of support from the government, given its systemic importance as the largest bank in India, as the sole banker in many economically backward regions and as a banker to various government entities, Fitch said in a statement.
As a result the long-term ratings are linked to the sovereign rating and will move in tandem with the latter, it said. However, it said, some of SBI’s credit fundamentals are under pressure.
The ratings of SBI are driven by a high probability of support from the government, given its systemic importance as the largest bank in India, as the sole banker in many economically backward regions and as a banker to various government entities, Fitch said in a statement.
As a result the long-term ratings are linked to the sovereign rating and will move in tandem with the latter, it said. However, it said, some of SBI’s credit fundamentals are under pressure.
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