Long-term issuer credit rating of Indian Overseas Bank downgraded

S&P Global Ratings said on Monday said it has downgraded the long-term issuer credit rating on Indian Overseas Bank (IOB) to BB from BB+, but retained the short-term rating at B.

It said the bank’s ratings has been removed from the credit watch, where it was placed with negative implications in February 2016.

“At the same time, we lowered our issue ratings on IOB’s senior unsecured debt to BB from BB+. We downgraded IOB because we expect the bank’s asset quality to remain weak over the next 12 months, following a deterioration in the past few quarters,” the rating agency said.

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The ratings, S&P said, reflect its expectation that the government will in all likelihood continue to support the bank.