S&P Global Ratings said it has lowered its long-term issuer credit rating on Syndicate Bank to 'BB+' due to continued pressure on asset quality, given the tough operating conditions for the corporate sector in India, reported PTI.
"We downgraded Syndicate because we expect the bank's asset quality to remain weak over the next 12 months, following a deterioration in the past two quarters," S&P Global Ratings credit analyst Amit Pandey said as per the media report.
"Accordingly, we also lowered Syndicate stand-alone credit profile (SACP) to 'bb' from 'bb+'," Pandey added.
S&P Global Ratings said that Syndicate's credit costs will remain high over the next 12 months because of continued pressure on asset quality, given the tough operating conditions for the corporate sector in India.
Syndicate bank's reported a full-year loss of Rs 16.4 billion, with losses of Rs 21.6 billion in the last quarter of fiscal 2016, and Rs 1.2 billion in the previous quarter.
"The main reason for these losses was a sharp rise in provisions and nonperforming loans (NPL).