Image Source: Times of India
Fitch Ratings has revised the outlook on ICICI Bank Limited’s Long-Term Issuer Default Rating (IDR) to Positive from Stable, while affirming the rating at 'BB+'. The revision reflects improved prospects in India’s banking sector operating environment, supported by strong growth potential and diversified economic fundamentals.
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Fitch Ratings announced on February 5, 2026, that ICICI Bank’s Long-Term IDR has been affirmed at 'BB+' with a revised outlook to Positive. The decision underscores confidence in the bank’s viability and the supportive operating environment of India’s financial sector.
Key Highlights
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ICICI Bank’s Long-Term IDR is driven by its Viability Rating (VR), which remains aligned with its Government Support Rating (GSR).
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The outlook revision follows Fitch’s upgrade of India’s banking-sector operating environment factor score to Positive from Stable.
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Fitch cited India’s strong medium-term growth potential and large, diversified economy as critical drivers of the improved outlook.
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The affirmation at 'BB+' indicates elevated vulnerability to default risk but also highlights moderate prospects for ongoing viability.
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ICICI Bank’s performance continues to benefit from robust domestic demand, government expenditure, and sectoral resilience.
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The bank’s VR and GSR have both been affirmed at 'bb+', reinforcing its stability within the broader Indian banking landscape.
This rating action reflects Fitch’s confidence in ICICI Bank’s ability to navigate evolving market conditions while leveraging India’s economic growth trajectory.
Sources: Fitch Ratings, NDTV Profit
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