New Delhi: Domestic credit rating agency Crisil said that ICICI Bank continues to carry top investment grade ratings for its debt instruments and fixed deposits — becoming the third major rating agency to endorse strong credit fundamental for the lender.
Crisil has reaffirmed its AAA/FAAA ratings on the debt instruments and fixed deposits of ICICI Bank. These ratings reflect the bank’s strong market position and healthy capitalisation, the rating agency said in a statement.
The ratings also factor in the demonstrated capabilities of the bank’s management, average but improving resource position and moderate asset quality, it said.
Earlier, its parent company S&P and another global rating firm Moody’s had also retained the ratings saying overseas arms of ICICI have no significant sub-prime risks.
“ICICI Banks UK subsidiary has no high risk sub-prime securities and enjoys robust asset quality and liquidity,” Moody’s said in its latest credit report.
These ratings assume importance in the wake of reports that it was over-exposed to risk caused by the global meltdown and that the banks loan profile was not fully secured.
Crisil said that ICICI bank has adequate liquidity. The bank generally maintains an excess statutory liquidity ratio (SLR) of around 1% and has liquid investments in excess of Rs1,000 crore.
In addition, the bank has access to call money markets with a daily limit of Rs 48,000 crore. Although the present liquidity scenario is expected to put pressure on the bank’s short term asset-liability management, it said.
ICICI Bank has sufficient liquidity, it said, adding, the bank’s loan exposure in its international banking operations is predominantly to Indian companies.