S&P affirms ratings assigned to bank facilities of ICICI Bank

Global rating agency, S&P has affirmed its ‘BBB-’ long-term and ‘A-3’ short-term foreign currency issuer credit ratings on ICICI Bank. The outlook on the long-term rating is stable. The agency has also affirmed issue ratings on the bank’s outstanding senior unsecured notes and Basel II compliant tier 2 hybrid notes.

The agency has affirmed the ratings because it expects the bank to maintain its strong business position supported by its good business diversity, and its satisfactory capitalization and funding, despite weakening asset quality.

The agency expects the bank’s credit costs to remain high because of continued pressure on asset quality, given the tough operating conditions for capital intensive corporate sectors in India.