Moody's assigns Counterparty Risk Ratings for ICICI Bank

On 12 June 2018

ICICI Bank announced that Moody's Investors Service on 12 June 2018 assigned Counterparty Risk Ratings to the bank and its branches as under -

ICICI Bank:
Assigned local currency long-term Counterparty Risk Rating of Baa2.
Assigned local currency short-term Counterparty Risk Rating of P-2.
Counterparty risk assessment upgraded to Baa2(cr)/P-2(cr) from Baa3(cr)/P-3(cr)

ICICI Bank, Bahrain Branch:
Assigned local currency long-term Counterparty Risk Rating of Ba1.
Assigned local currency short-term Counterparty Risk Rating of NP.

ICICI Bank, Dubai Branch:
Assigned local currency long-term Counterparty Risk Rating of Baa2.
Assigned local currency short-term Counterparty Risk Rating of P-2.
Counterparty risk assessment upgraded to Baa2(cr)/P-2(cr) from Baa3(cr)/P-3(cr)

ICICI Bank, Hong Kong Branch:
Assigned local currency long-term Counterparty Risk Rating of Baa2.
Assigned local currency short-term Counterparty Risk Rating of P-2.
Counterparty risk assessment upgraded to Baa2(cr)/P-2(cr) from Baa3(cr)/P-3(cr)

ICICI Bank, New York Branch:
Assigned local currency long-term Counterparty Risk Rating of Baa2.
Assigned local currency short-term Counterparty Risk Rating of P-2.
Counterparty risk assessment upgraded to Baa2(cr)/P-2(cr) from Baa3(cr)/P-3(cr)

ICICI Bank, Singapore Branch:
Assigned local currency long-term Counterparty Risk Rating of Baa2.
Assigned local currency short-term Counterparty Risk Rating of P-2.
Counterparty risk assessment upgraded to Baa2(cr)/P-2(cr) from Baa3(cr)/P-3(cr)

Moody's Counterparty Risk Ratings are opinions of the ability of entities to honor the uncollateralized portion of non-debt counterparty financial liabilities (CRR liabilities) and also reflect the expected financial losses in the event that such liabilities are not honored. CRR liabilities typically relate to transactions with unrelated parties. Examples of CRR liabilities include the uncollateralized portion of payables arising from derivatives transactions and the uncollateralized portion of liabilities under sale and repurchase agreements. CRRs are not applicable to funding commitments or other obligations associated with covered bonds, letters of credit, guarantees, servicer and trustee obligations, and other similar obligations that arise from a bank performing its essential operating functions.

Moody's could upgrade ICICI Bank's deposit ratings if Moody's upgrades both the bank's BCA and the Government of India's sovereign rating. Nevertheless, Moody's could revise the ratings outlook to positive if the bank is able to improve its asset quality and profitability profile on a sustained basis or its capital position significantly strengthens.

ICICI Bank's BCA could be downgraded if: (1) the bank's NPL ratio deteriorates significantly from the current level, or (2) a decline in earnings leads to a significant decrease in internal capital generation. Moody's could also downgrade the deposit ratings if Moody's downgrades India's sovereign rating.

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