S&P affirms Union Bank's long, short term rating, revises SACP to 'BB-'

The bank's capital buffers have weakened due to the its merger with Andhra Bank and Corporation Bank earlier this year

Rating agency Standard and Poor’s (S&P) on Thursday revised the assessment of Union Bank of India’s stand-alone credit profile (SACP) from 'BB' to 'BB-' on weakened capital buffer.

The rating agency affirmed long-term issuer rating 'BB+' and short-term issuer rating 'B' for the Mumbai-based public sector lender.

The capital buffers have weakened due to the bank's merger with Andhra Bank and Corporation Bank earlier this year, as well as three consecutive years of accumulated losses, S&P said in a statement.

The stable outlook on rating reflects a view that Union Bank will maintain its financial profile over the next 12-18 months despite tough