State Bank of India (SBI) has slipped nearly 3%, extending yesterday's losses, after Moody’s Investors Service on Tuesday cut the stand-alone rating of the bank. The downgrade has flagged concerns over capital adequacy and rapid deterioration in asset quality.
The agency cut its rating on SBI’s financial strength to D+ from C-, while it also lowered its hybrid debt rating on the bank to Ba3 from Ba2, following the reduction in financial strength rating.
“The revised stand-alone rating carried a stable outlook and the hybrid rating a negative outlook," Moody’s said.
The scrip opened at Rs 1,804 today and is currently trading at Rs 1,740 after touching a low of Rs 1,734 in trade thus far. Around 433,703 shares have changed hands on the BSE counter till 1015 hours.