Life Insurance Corporation of India is also review for possible downgrade

Global agency Moody's, on Monday, placed credit ratings of ICICI Bank, HDFC Bank and Axis Bank on watch for a possible downgrade within three months.

The announcement reflects Moody's revised assessment of the linkage between the credit profiles of sovereigns and financial institutions globally.

“Consistent with this guidance, Moody's expects to position the standalone credit assessments of most banks globally at (or below) the rating of the sovereign where the bank is domiciled,” Moody's Investors Service said adding “Moody's expects to conclude the reviews within approximately three months.''

In its reaction, ICICI Bank's spokesperson said: “The rating action by Moody's is not a change in the sovereign rating of India and not affect ratings of any instrument issued by ICICI bank (bonds or deposits).

Moody's has also placed the insurance financial strength rating of LIC under review for possible downgrade. — PTI

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