Standard & Poor's Ratings Services today said that it has assigned its 'A-1+' short-term issue rating to the proposed US$300 million U.S. commercial paper (USCP) program of ICICI Bank Ltd. (BBB-/Negative/A-3).
This program is supported by a US$300 million irrevocable direct-pay letter of credit (LC) issued by Wells Fargo Bank N.A. (AA-/Negative/A-1+).
The LC is in favor of the depository for the benefit of CP holders. The LC is subject to New York's law and the provisions of the Uniform Customs and Practice. 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.
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 program is therefore equivalent to the short-term counterparty credit rating on Wells Fargo.
The rating on the program will change if the short-term counterparty credit rating on Wells Fargo changes or the transaction structure materially changes. The termination date of the program is Dec. 17, 2013. The proceeds from the proposed program shall be used for general corporate purposes.
The rating on the program is subject to our review of the final issuance documentation. The report was released by the rating agency