Moodys downgraded one tranche of SBI’s borrowing…but the Indian Media has downgraded SBI!!
Amazing what lack of training can do.
One small tranche of US $ 400 million borrowing has been downgraded by Moodys (which can do no wrong, because Warren Buffet is a shareholder) to D. However, rest assured this is surely a cheap publicity stunt – it will take SBI about 10 minutes to raise this kind of amount from the Indian public at 10% p.a interest rate….
However our great media has gone to town saying ..why FIIs will sell SBI (or have already sold) ..and SBI shares will go down etc. In fact there is always such a over reaction that more US $ 400 Million has been taken out of the market capitalisation of SBI.
What should you do if you are the shareholder of SBI with a longterm view?
Simple, switch channels.
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