Moody's Investors Service has today said that the Baa2 rating of ICICI Bank, Dubai Branch's USD denominated senior unsecured notes, remains unchanged following the announcement of a tap bond offering on its existing USD 500 million notes issued in September 2014.

The rating outlook is stable. The tap bond offering has the same terms and conditions as the existing notes.

The Baa2 senior unsecured debt rating is anchored on ICICI Bank's baa3 baseline credit assessment (BCA) and the high likelihood of systemic support in the event of a crisis. The Baa2 rating is at the same level as the foreign currency debt ceiling for India. The bank's foreign currency deposit ratings of Baa3/P-3 are constrained by the sovereign ceiling.

ICICI Bank's BCA 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; the bank's high borrower concentration in the form of its mandatory government securities portfolio; its improving but still weak asset quality when compared to its global peers; the challenging domestic operating environment; and the intense competition it faces in its operating markets.

Shares of the bank declined Rs 5.75, or 1.6%, to trade at Rs 353.70. The total volume of shares traded was 343,891 at the BSE (1.35 p.m., Monday).