Standard & Poor's Ratings Services today said that it had affirmed its 'A-1+' short-term rating to ICICI Bank's (foreign currency: BBB-/Stable/A-3) $ 375 million commercial paper (USCP) program. This program is the second that the bank has established and it is supported by a $ 375 million irrevocable direct-pay letter of credit issued by Bank of America N.A.
The 'A-1+' short-term rating on the USCPs will expire when the letter of credit expires for September 30, 2009. The program size has been reduced from $ 500 million. Another similar $ 300 million USCP program (still in existence) is supported by a $ 300 million irrevocable direct-pay letter of credit issued by Fortis Bank SA/NV(A/developing/A-1). ICICI Bank will be issuing these latest USCPs through its overseas branches in New York, Hong Kong and Bahrain.
The USCPs constitute direct, unconditional, unsubordinated and unsecured obligations of ICICI Bank and will rank pari passu with all of the bank's unsecured and unsubordinated obligations.
As the USCP holders will be paid by BofA on the maturity dates, they bear the credit risk of BofA. Hence, the 'A-1+' rating on this program is equivalent to the short-term counterparty credit rating on BofA. The rating on these USCPs will change if BofA's short-term counterparty credit rating changes or if the transaction structure materially changes. These USCPs will have a maximum tenor of 360 days and proceeds from this issue are expected to be used for general corporate purposes.
The rating on these USCPs will change if BofA's short-term counterparty credit rating changes or if the transaction structure materially changes. These USCPs will have a maximum tenor of 360 days and proceeds from this issue are expected to be used for general corporate purposes.
The ICICI Bank stock was trading at Rs 522.7 a share at 1225 hours, down 5.21 per cent from yesterday's close.