S&P Global Ratings said Monday that it had lowered its long-term foreign currency issuer credit rating on  IDBI Bank to 'BB' from 'BB+'. The outlook is stable. At the same time, we lowered our issue ratings on the India-based bank's senior unsecured notes to 'BB' from 'BB+'. We affirmed the 'B' short-term rating on IDBI.

"We downgraded IDBI because we expect the bank's asset quality to remain very weak over the next 12 months," said S&P Global Ratings credit analyst Nikita Anand. "Our view is based on the bank's customer concentration and a sizable exposure to the highly vulnerable corporate and infrastructure segments."

We have therefore reassessed the bank's risk position score to very weak from weak. Accordingly, we lowered IDBI's stand-alone credit profile (SACP) to 'b-' from 'bb-'.

Shares of the bank gained Rs 2.5, or 3.07%, to settle at Rs 84.05. The total volume of shares traded was 1,109,284 at the BSE (Tuesday).