Standard & Poor’s (S&P) Ratings Services has lowered its short-term issue credit rating on ICICI Bank’s $300 million US commercial paper (USCP) program to ‘A-1’ from ‘A-1+’. This action follows Standard & Poor’s downgrade of the rating on Fortis Bank SA/NV (Fortis Bank) on July 17, 2008, to ‘A+/A-1’ from ‘AA-/A-1+’. The issue is supported by an irrevocable $300 million direct-pay letter of credit issued by Fortis Bank. As the USCP holders shall be paid directly by Fortis Bank on the maturity dates, they bear the credit risk of Fortis Bank and were rated equivalent to the short-term counterparty credit rating on Fortis Bank.
S&P slashes ICICI Bank?s USCP ratings
As the USCP holders shall be paid directly by Fortis Bank on the maturity dates, they bear the credit risk of Fortis Bank and were rated equivalent to the short-term counterparty credit rating on Fortis Bank.
