Moody's rates State Bank of India notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to State Bank of India's proposed issuance of dollar-denominated senior notes.

The senior notes will be issued via Rule 144A.

The outlook is stable.

The agency said it recognizes the bank's dominance as the largest commercial bank in India with a share of more than 16% of the system's loans and deposits with a nationwide reach through more than 14,000 branches.

However, the deterioration in asset quality witnessed over the last 18 months, including a rise in impaired loans, increases the bank's risk profile, Moody's said.

The ratings also consider the bank's systemic importance, which is characterized by its dominant market position as the largest bank in the country and its 62.31% ownership by the government, the agency said.

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