ICICI BANK'S CREDIT FUNDAMENTALS CONTINUE TO REMAIN SOUND: S&P

NEW DELHI, Oct 14, 2008 (AsiaPulse via COMTEX) -- IBN | Quote | Chart | News | PowerRating -- The credit fundamentals of ICICI Bank (BSE:532174) continue to be sound, backed by strong market position in the domestic banking industry and adequate financial profile, global credit rating agency Standard & Poor's release said.

This is supported by its healthy capitalisation, satisfactory loan quality and diversification, it added.

"The overseas loan and credit derivative portfolio of the bank, including its overseas subsidiaries, is predominantly to Indian companies for their Indian and overseas operations and hence its quality is largely dependent on corporate credit quality and economic conditions in India," the release said.

The credit rating agency believes that the Indian banking industry's regulatory environment and institutional framework is supportive.

"We also consider ICICI Bank to be systemically important and hence is expected to receive extraordinary systemic support in the event of any financial distress. However, the existing credit rating on the bank does not incorporate this support and is entirely based on its stand-alone credit profile," it added.

It further said that given the expectation of continued strong growth in India's economy, despite some moderation in growth in the near term, credit losses in this portfolio are not expected to be significant, at this moment.

The bank, through its subsidiary ICICI Bank UK, also has a sizeable US$3.5 billion investment portfolio. This includes about US$80 million exposure to Lehman Brothers.

(PTI)

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