Standard & Poor’s Ratings Services on Tuesday said that it has assigned its ‘A-1+’ short-term issue rating to the proposed $300-million US Commercial Paper (USCP) programme of ICICI Bank Ltd.
This programme is supported by an equivalent irrevocable direct-pay letter of credit (LC) issued by Wells Fargo Bank N.A.
S&P said as the USCP holders will be paid directly by Wells Fargo on the maturity dates, the notes bear the credit risk of Wells Fargo.
“The ‘A-1+’ rating on this programme is therefore equivalent to the short-term counterparty credit rating on Wells Fargo,” an S&P note said.
ICICI Bank will issue the USCPs through its overseas branches in Hong Kong, Bahrain and New York. The USCPs constitute direct, unconditional, unsubordinated, and unsecured obligations of the bank, and will rank equally with all of the bank’s unsecured and unsubordinated obligations.