Moody’s assigns Baa3 to Icici notes

Moody's Investors Service said it assigned a Baa3 rating to Icici Bank Ltd.’s (Baa3, positive) proposed dollar-denominated senior unsecured notes, issued under its $7.5 billion global medium-term note program.

The drawdown will be carried out from its DIFC's (Dubai) branch. The bonds will have a maturity of five years and will be listed on the Singapore Stock Exchange.

The outlook, where applicable, is positive.

The Baa3 foreign currency senior unsecured medium-term note debt rating is anchored on Icici's baa3 baseline credit assessment.

Moody’s said the baseline credit assessment 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 (a) the challenging domestic operating environment, which could lead to a further deterioration in the asset quality; (b) 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 (c) improvement in core operating performance characterized by improving funding profile and cost-income ratios.

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