Singapore, November 15, 2012 -- Moody's Investors Service affirms the Baa2 rating of ICICI Bank Limited (ICICI Bank)'s previously issued CNH 4.90% senior unsecured notes due September 2015. The issuance was drawn down under its US$5 billion Global Medium Term Note (GMTN) program through its Singapore branch. The bonds have a 3 year maturity and are listed on the Singapore Stock Exchange ("SGX-ST").
The rating agency also affirms that additional notes issued as part of the notes' tap will be rated Baa2. The proposed issuance will be subject to the same terms and conditions as the CNH 4.90% senior unsecured notes due September 2015.
Moody's Investors Service has a standalone bank financial strength rating (BFSR) of D+ for ICICI Bank Limited, mapping to a baseline credit assessment (BCA) of baa3 on the long-term scale.
The ratings capture the bank's solid franchise as the second largest commercial bank in India as well as its strong capitalization, liquidity, and earnings profile. The ratings also reflect the bank's high borrower concentration in the form of its mandatory government securities portfolio, its weaker asset quality when compared to its Indian private sector peer banks and the difficult operating environment currently prevailing in India, including the intense competition it faces in its domestic markets.
We believe that the probability of systemic support for ICICI Bank is very high, given its sizeable retail deposit franchise and its importance to the national payments system as India's second largest commercial bank. Therefore, the long-term local currency deposit and foreign currency senior unsecured debt ratings receive a one-notch rating uplift from its BCA.
The foreign currency senior unsecured debt rating at Baa2 is at the same level as the foreign currency debt ceiling for India. The bank's foreign currency deposit ratings of Baa3/P-3 are constrained by the sovereign ceiling.
The other ratings of ICICI Bank are:
Baa2 foreign currency long-term senior unsecured debt rating
(P)Baa2 foreign currency long-term senior unsecured debt program rating
Baa2 long-term local currency bank deposit rating
Prime-2 short-term local currency bank deposit rating
Baa3 long-term foreign-currency deposit rating
Prime-3 short-term foreign currency bank deposit rating
Baa3 foreign currency subordinated debt rating
(P)Baa3 foreign currency subordinated debt program rating
Ba1 foreign currency junior subordinated debt rating
(P)Ba1 foreign currency junior subordinated debt program rating
Ba3 (hyb) foreign currency hybrid tier 1 debt rating
All ratings carry stable outlooks.
The principal methodology used in this rating was Moody's Consolidated Global Bank Rating Methodology published in June 2012. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.
ICICI Bank, headquartered in Mumbai (India), had assets of INR4,970 billion at September 2012.
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Vineet Gupta Vice President - Senior Analyst Financial Institutions Group Moody'sInvestors Service Singapore Pte. Ltd.50 Raffles Place #23-06 Singapore Land TowerSingapore 48623 Singapore JOURNALISTS: (852) 3758 -1350 SUBSCRIBERS: (65) 6398-8308 Stephen Long MD - Financial Institutions Financial Institutions Group JOURNALISTS: (852) 3758 -1350 SUBSCRIBERS: (852) 3551-3077 Releasing Office: Moody's Investors Service Singapore Pte. Ltd.50 Raffles Place #23-06 Singapore Land TowerSingapore 48623 Singapore JOURNALISTS: (852) 3758 -1350 SUBSCRIBERS: (65) 6398-8308 (C) 2012 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved.
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