Moody's assigns Baa3 to ICICI's USD note drawdown

Moody's Investors Service, ("Moody's") has assigned a Baa3 rating to ICICI Bank Limited's (ICICI, Baa3, Positive) proposed USD denominated senior unsecured notes, issued under its US$7.5 billion Global Medium-Term Note (GMTN) program. The drawdown will be carried out from its Dubai International Financial Centre (DIFC) branch, and the bonds will be listed on the Singapore Stock Exchange.

The outlook on the ratings, where applicable, is Positive.

The senior debt rating is subject to receipt of final documentation, the terms and conditions of which are not expected to change in any material way from the draft documents reviewed by Moody's.

RATINGS RATIONALE

 

The Baa3 foreign currency senior unsecured MTN debt rating is anchored on ICICI's baa3 baseline credit assessment (BCA).

ICICI's BCA of baa3 is underpinned by the bank's solid franchise as India's largest private sector bank by assets, as well as its strong capitalization, liquidity, and earnings profile. It also takes into consideration (1) the challenging domestic operating environment, which could lead to a further deterioration in the asset quality; (2) high buffers to withstand further asset quality deterioration including strong pre-provision income generation, high loan loss coverage levels and high levels of capitalization; and (3) improvement in core operating performance characterized by improving funding profile and cost-income ratios.

The full list of ratings for ICICI Bank Limited are:

Long-term local currency deposit rating of Baa3; positive outlook

Short-term local currency deposit rating of P-3

Long-term foreign currency deposit rating of Baa3; positive outlook

Short-term foreign currency deposit rating of P-3

Foreign currency senior unsecured MTN program rating of (P)Baa3

Foreign currency subordinated MTN program rating of (P)Ba1

Foreign currency junior subordinated MTN rating of (P)Ba2

BCA and Adjusted BCA of baa3

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