11 Indian banks downgraded by S&P

It’s not welcome news for banks anytime.

Standard & Poor's Ratings Services has downgraded to negative from stable the outlook on its long-term counterparty credit ratings on 11 Indian banks and financial institutions.

The 11 are Axis Bank Ltd., Bank of India, HDFC Bank Ltd., ICICI Bank Ltd., IDBI Bank Ltd., Indian Overseas Bank, Indian Bank, Infrastructure Development Finance Company Ltd, State Bank of India, Syndicate Bank and Union Bank of India.

The outlook revision follows S&P downgrding the outlook on India's long-term rating to negative from stable due to slow fiscal progress and deteriorating economic indicators.

S&P cautioned that it could further lower the ratings of these financial institutions if it lowers the sovereign rating, or if the standalone credit profiles of these financial institutions deteriorate sharply. It said, however, that this deterioration is unlikely in most cases.

The specific ratings: Axis Bank Ltd. (BBB-/Negative/A-3); Bank of India (BBB-/Negative/A-3); HDFC Bank Ltd. (BBB-/Negative/A-3); ICICI Bank Ltd. (foreign currency: BBB-/Negative/A-3); IDBI Bank Ltd. (foreign currency: BBB-/Negative/A-3); Indian Overseas Bank (BBB-/Negative/A-3); Indian Bank (BBB-/Negative/A-3;) Infrastructure Development Finance Company Ltd. (BBB-/Negative/A-3); State Bank of India (BBB-/Negative/A-3); Syndicate Bank (BBB-/Negative/A-3) Union Bank of India (BBB-/Negative/A-3).