ICRA assigns LAAA rating to subordinate bond prog of SBH

New Delhi, Sep 25 (UNI) Credit rating agency ICRA today assigned highest-credit-quality rating 'LAAA' to the proposed Rs 500 crore subordinated bond programme of State Bank of Hyderabad (SBH).

ICRA also reaffirmed LAAA rating assigned earlier to the subordinated debt and A1+ rating to Rs 1,500 crore Certificate of Deposit (CD) programme of the bank.

The ratings also factors in the banks stable core earnings, superior solvency as a result of control on the asset quality and high coverage of its NPAs, adequate capital adequacy and comfortable liquidity position.

As on March 31, 2006 SBH had an asset size of Rs 40,600 crore (16 per cent growth over previous year) and loans portfolio of Rs 20,900 crore (34 per cent growth over 2004-05).

UNI SBA RA GC1752