Credit rating agency ICRA today said that debt programmes of private sector lender ICICI Bank carry highest credit quality ratings, supported by its standing as the country's second largest bank and sound capitalisation position.
In a rating watch statement, ICRA said that it has re-affirmed the LAAA rating with a stable outlook on ICICI Bank's subordinated debt programme and long-term bonds programme, which indicate highest credit quality and lowest credit risk for the two instruments.
Besides, the agency has also re-affirmed its highest credit quality rating, MAAA, for the bank's term deposit programme and the A1+ rating, indicating highest safety in the short term, for the Rs 50,000 crore certificates of deposit programme of the bank.
Besides, the ratings for the debts taken over by ICICI Bank from the erstwhile ICICI have also been retained at LAAA with stable outlook and MAAA, respectively.
"The highest credit quality ratings are supported by ICICI Banks' position in the Indian financial system as the second largest commercial bank, its sound capitalisation levels, its extensive corporate relationships and the bank's retail franchise," ICRA said.
ICRA has taken note of the pressure on the profitability of the bank as a result of deterioration in retail asset quality, increase in cost of funds and rise in provisions on its investment book.
