ICRA has reaffirmed [ICRA]AA rating outstanding for lower tier-II bonds programme aggregating to Rs 10.75 billion of UCO Bank (UCO).

ICRA has also reaffirmed [ICRA] AA- rating for Rs 5 billion upper tier-II bond programme of the bank. However, the outlook on the long term ratings of the bank has been revised to 'negative' from 'stable'.

''The revision in outlook reflects significant continued pressure on earnings and solvency of UCO due to sharp deterioration in asset quality as well as limited visibility on capital availability to fully support credit growth while meeting regulatory minimum requirement,'' said the rating agency.

Shares of the bank declined Rs 0.60, or 1.86%, to trade at Rs 31.70. The total volume of shares traded was 220,265 at the BSE (Monday).