Syndicate Bank long-term issuer credit rating downgraded

S&P Global Ratings on Monday downgraded the long-term issuer credit rating of Syndicate Bank to BB+ from BBB- and said that its outlook was stable.

At the same time, it lowered the short-term rating on the bank to B from A-3 and lowered the issue ratings on the bank’s senior unsecured debt to BB+ from BBB-.

“We downgraded Syndicate because we expect the bank’s asset quality to remain weak over the next 12 months, following a deterioration in the past two quarters,” S&P said.

The rating agency anticipates that Syndicate Bank’s credit costs will remain high over the next 12 months because of continued pressure on asset quality, given the tough operating conditions for the corporate sector in India.