CARE reaffirms rating of Syndicate Bank’s various bonds issues

Credit rating agency, CARE has reaffirmed AA+ rating to Syndicate Bank’s Lower Tier II Bonds worth Rs 1,200 crore .The rating agency has reaffirmed AA rating to the bank’s Upper Tier II Bonds worth Rs 819.7 crore and Perpetual Bonds worth Rs 773.0 crore. The rating agency has also reaffirmed A1+rating to the bank’s Certificate of Deposit worth Rs 20,000 crore.

The bank has received the said rating reaffirmation on the back of its majority ownership by the Government of India (GoI), comfortable capitalization levels and the bank’s well-diversified credit portfolio. Further, the ability of the bank to maintain its margins, improve its asset quality, improve its resource profile and continued ownership and support by GoI are the key rating sensitivities.

Syndicate Bank (SB) is a Manipal-based public sector bank which was established in 1925. As on March 31, 2012, GOI holds a majority stake [66.17%] in the bank.