Moody's Investors Service has assigned a Baa2 rating to its proposed CNH denominated senior unsecured notes, issued under its updated USD 7.5 billion Global Medium Term Note (GMTN) program. The drawdown is from its Bahrain branch. The bonds have maturity of 3 years and will be listed on the Singapore Stock Exchange (SGX-ST).

The rating outlook is stable. The senior debt rating is subject to receipt of final documentation, the terms and conditions of which are not expected to change in any material way from the draft documents reviewed by Moody's.

The Baa2 senior unsecured debt rating is anchored on ICICI'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'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 3.4, or 0.2%, to trade at Rs 1,703. The total volume of shares traded was 38,468 at the BSE (10.45 a.m., Thursday).