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"Although the bank's financial profile has weakened over the past year or so, and its performance has been affected by rising provisions in both its loans and investment portfolio, its overall financial condition still remains adequate," Fitch Ratings said in a statement here.
The agency has affirmed ICICI Bank's long-term foreign currency issuer default rating (IDR) at BBB- and short-term foreign currency IDR at F3, indicating relatively low to moderate credit risk.
Fitch has also retained its support rating floor at BBB- Support rating measures whether the bank will receive external support if it gets into difficulties.
The agency has also affirmed its long-term senior debt rating at BBB- and long-term rating of its perpetual hybrid debt and Upper Tier 2 subordinated debt at BB.
It further said that the long-term outlook is stable.
Senior debt is a form of debt that takes priority over other debt securities sold by the issuer.
These ratings may be downgraded if the bank's asset quality, which is already showing signs of weakness, deteriorates significantly more than anticipated, at this current juncture," the release added.
Fitch also said ICICI Bank enjoys strong support from the government (subject to the constraints imposed by India's own sovereign rating), thanks to its systemic importance as India's second-largest domestic bank. ICICI Bank posted a 42 per cent rise in operating profitfor the second quarter. The company's operating profit rose to Rs 2,437 crore for the period under review from Rs 1,712 crore in the year-ago period.
On a standalone basis the bank's profit after tax rose to Rs 1,014 crore, up by 1.1 per cent on a year-on-year basis.
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