Chennai, Oct 9 : The 93-year old private sector Lakshmi Vilas Bank (LVB) on Friday said credit rating agency CARE Ratings has downgraded its rating of already issued and proposed securities. In a regulatory filing, the LVB said CARE has downgraded its ratings of the Rs 50.50 crore unsecured redeemable non-convertible subordinated lower tier-II bonds to CARE BB Minus with Negative Outlook. The rating agency has also downgraded LVB's Rs 78.10 crore, Rs 140.10 crore and Rs 100 crore unsecured redeemable non-convertible subordinated lower tier-II bonds to CARE B Minus with Negative Outlook. The earlier ratings were CARE BB Plus with Negative Outlook. The CARE has also revised the ratings of the LVB's proposed Rs 250 crore Basel-II compliant additional tier-I perpetual bond to CARE B Minus with Negative Outlook from CARE B Positive with Negative Outlook. As to the rationale for the revision in ratings, CARE said it factored in the sharp decline in net worth due to significant losses reported in FY20 (the period from April 1, 2019 to March 31, 2020) and Q1FY21 (the period from April 1 to June 30) consequent to losses reported during these period. The bank reported total capital adequacy ratio (CAR) and Tier I CAR of 0.17 per cent and -1.83 per cent respectively as on June 30. The ratings are constrained by LVB's regional nature of operations, weak asset quality parameters, weak capitalisation levels and continuation of losses in Q1FY21. The rating also takes note of decline in total business of the bank due to capital constraints and the recent changes in the board. In view of current capital adequacy levels, timely mobilisation of capital to augment its CAR is critical in the near term, CARE Ratings said. According to CARE Ratings, the negative outlook on rating reflects the likely continuation of negative net worth in view of delay in mobilising fresh capital. The outlook may be revised to stable in the event of improvement in capitalisation levels well above regulatory requirement. /IANS