Fitch upgrades Icici Bank to BBB-

Fitch Ratings said it upgraded India-based Icici Bank Ltd.'s long-term foreign-currency issuer default rating and $500 million bonds to BBB- from BB+ and short-term foreign-currency rating to F3 from B following the recent upgrade of India's sovereign ratings.

The individual and support ratings have been affirmed at C and 3, respectively. The long-term rating outlook is stable.

Icici's foreign-currency ratings continue to reflect the bank's improved financial condition. The reported gross non-performing loans ratio was 1.5% at the end of fiscal year 2006 - a vast improvement from 9.1% at the end of fiscal year 2003 - thanks to the benign credit environment and the rapid growth in the relatively safer secured consumer loan segment, Fitch said.

The key challenge for the bank is to maintain asset quality following the rapid loan growth since fiscal year 2003, with the bulk of the loans starting to season during an environment of rising interest rates, which could affect borrowers' repayment capacity.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.