S&P lifts Icici Bank Bahrain bonds to cnA-

S&P said it affirmed the BBB- long-term issue ratings on the senior unsecured bonds issued by the Bahrain branch of Icici Bank Ltd.

The agency said it removed the ratings from CreditWatch, where they were placed with negative implications in February.

S&P also said it raised the Greater China regional scale rating on Icici Bank's ¥600 million 4% bonds due in 2017 to cnA- from cnBBB+ and removed it from CreditWatch, where it was placed with developing implications in February.

The bonds are supported by the Australian-dollar and Chinese-renminbi denominated irrevocable and unconditional standby letters of credit provided by the DIFC branch of the bank, the agency said.

The ratings on the bonds were equalized with the ratings on the bank due to the improved credit quality of these bonds as the standby credit letters are an additional source of repayment, S&P explained.

The letters of credit mitigate exposure to Icici Bank's Bahrain branch by substituting the credit risk of the providers of the credit letters in its place, the agency said.

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