ICICI Bank’s LT FCR and BSR Outlook Revised to Negative Following Change in Sovereign Risk Assessment

ICICI Bank’s LT FCR and BSR Outlook Revised to Negative Following Change in Sovereign Risk Assessment

Capital Intelligence Ratings (CI Ratings or CI ) today announced that it has revised the Outlook on the Long-Term Foreign Currency Rating (LT FCR) and the Bank Standalone Rating (BSR) of ICICI Bank Ltd to Negative from Stable . This follows a change in CI Ratings’ internal assessment of the creditworthiness of the Indian sovereign, and reflects our expectation that India’s economy and public finances could deteriorate over the next 12 months due to the adverse financial impact of the coronavirus (Covid-19) pandemic. Moreover, a weaker operating environment could negatively impact the asset quality and profitability of the banking sector. Since the…