Moody's upgrades ICICI Bank, Axis Bank's baseline credit assessments

Affirms Baa3 deposit ratings of both Indian private sector lenders; outlook on ratings for both banks, where applicable, remains stable

Global rating agency Moody’s today upgraded ICICI Bank and Axis Bank’s baseline credit assessments (BCA) to “baa3” indicating medium grade financial strength from “ba1” indicating speculative financial strength. The upgrade in BCA reflects improvements in credit fundamentals - asset quality, capital, and profitability.

It also affirmed the Baa3 deposit ratings of both Indian private sector lenders.

The upgrade of the BCAs does not result in any change in the deposit ratings, since the deposit ratings are already at the same level as the India sovereign rating (Baa3 stable), Moody’s said in a statement today.

The outlook on ratings for both