The ratings have been revised/downgraded considering the outlook on bank's earnings profile, asset quality, regulatory and growth capital requirements, the bank said

New Delhi: Icra has downgraded some of Canara Bank's debt instruments after taking into account the state-owned lender's earning profile, asset quality and capital requirements, the bank said on Saturday. In a filing to the Bombay Stock Exchange (BSE), the bank said  ratings on its additional Tier-I bonds worth Rs 1,500 crore has been downgraded to 'AA-', with a stable outlook, from 'AA' with negative outlook.

Icra has, however, revised its outlook to "stable" because of expectation of an improvement in the bank's performance, reduced incremental stress on the bank's asset quality and gradual improvement in the solvency levels

Tier-II bonds worth Rs 7,900 crore has also been downgraded to 'AA+,' with stable outlook, from 'AAA' with a negative outlook.

"The ratings have been revised/downgraded considering the outlook on bank's earnings profile, asset quality, regulatory and growth capital requirements," Canara Bank said in the filing.

Icra has, however, revised its outlook to "stable" because of expectation of an improvement in the bank's performance, reduced incremental stress on the bank's asset quality and gradual improvement in the solvency levels going forward.