Indian Overseas Bank (IOB) witnessed a fall in share price on Wednesday after Standard & Poor (S&P)'s Ratings Services lowered its long-term issuer credit rating on the bank to 'BB+' from 'BBB-'. The outlook is stable. ''At the same time, we lowered our short-term rating on the bank to 'B' from 'A-3'. We also lowered our issue ratings on IOB's senior unsecured debt to 'BB+' from 'BBB-'.''

''We downgraded IOB following a recent deterioration in the bank's asset quality and our expectation that it will remain weak over the next 12 months. We revised our assessment of the bank's risk position to 'weak' from 'moderate,' as our criteria define those terms. Accordingly, we lowered the bank's stand-alone credit profile (SACP) to 'bb' from 'bb+','' said S&P.

Shares of the bank are trading at Rs 58.70, down Rs 1.4, or 2.33% at the Bombay Stock Exchange (BSE) on Wednesday at 12:06 p.m.

The scrip has touched an intra-day high of Rs 59.15 and low of Rs 58.40. The total volume of shares traded at the BSE is 181,558.