Bank of India shares slip despite S&P Global's BBB rating 

State-owned Bank of India has received a ‘BBB’ long-term & ‘A-2’ short-term issuer credit ratings from S&P Global Ratings. The rating agency said the long-term rating outlook for the bank is stable. The ratings are supported by sufficient capitalisation, solid funding and healthy liquidity. S&P sees very high likelihood of government support if needed. Bank of India is expected to maintain adequate capital, solid funding and liquidity over the next two years, said S&P Global Ratings.

The long-term rating on the lender is one notch above the rating agency's assessment of the stand-alone credit profile (SACP) for the bank.

"We think that there is a very high likelihood that the government would provide BOI with timely and sufficient extraordinary support in the event of financial distress. The starting point for our ratings on BOI is 'bbb-', the same as for any bank operating predominantly in India. About 85% of the bank's loan exposure is in India," said S&P Global Ratings.

Meanwhile, Bank of India shares are trading lower in the afternoon session today. Market cap of the bank stood at Rs 63,896 crore. The banking stock fell 1.16% to Rs 140.35 on BSE against the previous close of Rs 142.

In terms of price action, the stock trades below its all short term and long term simple moving averages.