S&P lowers rtg on ICICI Bank's USCP to 'A-1' on BofA cut

Standard & Poor's Ratings has lowered the credit rating on ICICI Bank Ltd.'s $375m commercial paper (CP) programme in the US market 'A-1'from 'A-1+'. The rating action was prompted by the downgrade of Bank of America as the CP was backed by BankAm in the US market.

A release by the rating agency said,` The program is supported by an irrevocable US$375 million direct-pay letter of credit issued by BofA. As the USCP holders will be paid directly by BofA on the maturity dates, the commercial papers bear the credit risk of BofA and are rated equivalent to the short-term counterparty credit rating on BofA.'

S&Ps has however clarified that the ratings on all the other issues of ICICI Bank are not affected by this rating action.