Private sector lenders ICICI Bank and Axis Bank have managed to retain their ratings in the recent ratings given out by credit rating agencies, Moody's and Fitch.

With Moody's recently downgrading the ratings of the largest lender of the country, State Bank of India, the private peers have heaved a sigh of relief with their rating remaining as they were.

ICICI Bank's consistent rating can be attributed to capitalization as well as franchise options it has adopted.

"Moody's believes the probability of systemic support for ICICI Bank is high, given its sizeable retail deposit franchise, as well as its importance to the national payment system as the second-largest commercial bank," it said.

Speaking about SBI's decline in rating, Chairman of the bank, Mr Pratip Chaudhuri said, "The downgrade applies to the perpetual debt, which was raised in 2007.

This, no longer, is considered in core capital under Basel-III norms. The bank is not likely to issue these instruments in the future."

He further said that the bank has already submitted a report discussing reasons for the same to the finance ministry.