Moody's downgrade not a downgrade per se: SBI Chairman

India largest lender State Bank of India is not worried about its stand-alone rating being downgraded by global credit rating agency Moody's.

According to chairman Pratip Chaudhuri, the downgrade is not a downgrade per se. "It is a downgrade of a small segment of the bank's debt," he clarified adding, "SBI's overall rating is still a notch above the sovereign."
The government has asked them to give a report on the reasons for the downgrade, Chaudhuri added.
The agency cited modest capital and weakening asset quality as one of the reasons for the downgrade.
However, Chaudhuri is confident that the rating downgrade will not make for any material change. "The financial costs will go up due to the global environment and not because of the rating," he stated.
The downgrade comes ahead of the second quarter earnings and led to a sharp fall in the stock.
Chaudhuri feels the much-awaited SBI rights issue will restore the bank