Standard & Poor’s Ratings Services said today that it had affirmed its ‘A-1+’ short-term issue rating to ICICI Bank Ltd.’s (foreign currency: BBB-/Stable/A-3) US$375 million U.S. commercial paper (USCP) program.This program is the second that ICICI Bank has established and it is supported by a US$375 million irrevocable direct-pay letter of.. credit issued by Bank of America N.A. (BofA; AA/Watch Neg/A-1+). The ‘A-1+’ short-term rating on the USCPs will expire when the letter of credit expires, scheduled for Sept. 30, 2009. The program size has been reduced from US$500 million. Another similar US$300 million USCP program (still in existence) is supported by a US$300 million irrevocable direct-pay letter of credit issued by Fortis Bank SA/NV (A/Developing/A-1). ICICI Bank will be issuing these latest USCPs through its overseas branches in New York, Hong Kong, and Bahrain.

The USCPs constitute direct, unconditional, unsubordinated and unsecured obligations of ICICI Bank and will rank pari passu with all of the bank’s unsecured and unsubordinated obligations. As the USCP holders will be paid by BofA on the maturity dates, they bear the credit risk of BofA. Hence, the ‘A-1+’ rating on this program is equivalent to the short-term counterparty credit rating on BofA.

The rating on these USCPs will change if BofA’s short-term counterparty credit rating changes or if the transaction structure materially changes. These USCPs will have a maximum tenor of 360 days and proceeds from this issue are expected to be used for general corporate purposes.

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