Canara Bank said Saturday rating agency Icra has downgraded some of its debt instruments taking into account the lender's earning profile, asset quality and capital requirements.

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In a filing to the BSE, public sector Canara Bank said ratings on its additional Tier-I bonds worth Rs 1,500 crore has been downgraded to 'AA-', with a stable outlook, from 'AA' with negative outlook.

Icra rating on Tier-II bonds worth Rs 7,900 crore too has been downgraded to 'AA+', with stable outlook, from 'AAA' with a negative outlook. 

"The ratings have been revised/downgraded considering the outlook on bank's earnings profile, asset quality, regulatory and growth capital requirements," Canara Bank said.

The outlook has been revised to "stable" on account of expectation of an improvement in the bank's performance, reduced incremental stress on the bank's asset quality and gradual improvement in the solvency levels going forward, it added.