ICRA has reaffirmed the AA+(hyb) rating for the Rs 32.50 billion basel III compliant tier-II bond programmes of Syndicate Bank. The outlook on the rating has been revised from Stable to Negative.

The letters ''hyb'' in parenthesis suffixed to a rating symbol stand for ''hybrid'', indicating that the rated instrument is a hybrid subordinated instrument with equity-like loss-absorption features; such features may translate into higher levels of rating transition and loss-severity vis-à-vis conventional debt instruments.

The rated Tier-II bonds are expected to absorb losses once ''Point of Non Viability'' (PONV) trigger is invoked. The revision in outlook takes into account the more than expected weakening in the bank's asset quality and profitability profile of the bank.

Shares of the bank gained Rs 2.2, or 3.13%, to settle  at  Rs 72.40.  The total volume of shares traded  was  207,311 at  the BSE (Wednesday).