On Wednesday, both S&P and Fitch accorded an investment-grade rating of 'BBB-' to the upcoming dollar-denominated bonds set to be issued by the London branch of the largest bank in India, State Bank of India (SBI). The issuance of senior unsecured notes is slated to be part of SBI's USD 10 billion medium-term note programme, as stated by S&P in an official statement.
According to S&P, "S&P Global Ratings today assigned its 'BBB-' long-term issue rating to benchmark-sized notes that the London branch of State Bank of India (SBI) proposes to issue." This designation reflects the creditworthiness of the proposed bonds, providing investors with an indication of the expected risk associated with the securities.
The 'BBB-' rating signifies that S&P and Fitch consider the bonds to have a moderate credit risk, falling within the investment-grade category. This rating can influence investor confidence and interest in the issuance, as higher credit ratings generally indicate lower default risk. The assignment of investment-grade ratings to the proposed bonds reflects positively on SBI's financial stability and creditworthiness in the global market.
(With Agency Inputs)
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