S&P downgrades IDBI Bank to 'BB' on very weak asset quality

Global ratings agency Standard & Poor’s (S&P) has lowered the long-term foreign currency issuer credit rating of IDBI Bank to 'BB' from 'BB+'. The asset quality of the public sector lender is expected to remain very weak over the next 12 month, S&P said.

"Our view is based on the bank's customer concentration and a sizable exposure to the highly vulnerable corporate and infrastructure segments," said S&P Global Ratings credit analyst Nikita Anand.

Therefore, S&P has reassessed the bank's risk position score to 'very weak' from 'weak'. Accordingly, it has lowered IDBI's stand-alone credit profile to 'B-' from 'BB-'.

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