(The following statement was released by the rating agency) Fitch Ratings-Singapore/Mumbai-September 18: Fitch Ratings has assigned State Bank of India 's (NS:SBI, BBB-/Stable) proposed senior unsecured debt an expected rating of 'BBB-(EXP)'. SBI plans to use the proceeds from the proposed note issue to finance environmentally friendly projects in accordance with the bank's Green Bond Framework. The notes will constitute SBI's direct, unconditional, unsubordinated and unsecured obligations and will at all times rank pari passu among themselves and with all of its other unsubordinated and unsecured obligations. The tenor of the issue is expected to be five years and the notes are to be issued by SBI's London branch. The final rating is subject to the receipt of final documentation conforming to information already received.
KEY RATING DRIVERS SENIOR DEBT The senior unsecured instruments are rated at the same level as the bank's Issuer Default Rating (IDR), in accordance with Fitch's criteria. SBI's IDR is driven by its Support Rating Floor of 'BBB-', which is higher than its Viability Rating of 'bb+'. The Support Rating Floor reflects Fitch's expectation of a very high probability of extraordinary support from India sovereign (BBB-/Stable), if necessary, given the bank's very high systemic importance and quasi-sovereign status. RATING SENSITIVITIES SENIOR DEBT SBI's senior debt ratings are broadly sensitive to the same considerations that affect its IDR. Any change in the IDR will result in a similar change in the rating on the proposed notes. For more details on SBI's ratings and credit profile, see Fitch Affirms 5 Indian Banks' IDRs at 'BBB-'; Downgrades VR of SBI and BoB /a , dated 13 June 2018 and State Bank of India (NS:BOI) - Ratings Navigator /a , dated 4 July 2018, available at www.fitchratings.com
Contact: Primary Analyst Ambreesh Srivastava Senior Director +65 6796 7218 Fitch Ratings Singapore Pte Ltd. One Raffles Quay South Tower #22-11 Singapore Secondary Analyst Saswata Guha Director +91 22 4000 1741 Committee Chairperson Jonathan Cornish Managing Director +852 2263 9901 Date of the Relevant Rating Committee: 12 June 2018 Media Relations: Bindu Menon, Mumbai, Tel: +91 22 4000 1727, Email: bindu.menon@fitchratings.com. Additional information is available on www.fitchratings.com Applicable Criteria Bank Rating Criteria - Effective from 23 March 2018 to 22 June 2018 (pub. 23 Mar 2018) https://www.fitchratings.com/site/re/10023430 Additional Disclosures Solicitation Status https://www.fitchratings.com/site/pr/10036724#solicitation Endorsement Policy https://www.fitchratings.com/regulatory ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. 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