Fitch rates Kotak Mahindra issue AA+(ind)

Fitch Ratings said it assigned an AA+(ind) national rating to the Rs.750 million and Rs.500 million subordinated (lower tier 2) debt programs of Kotak Mahindra Bank Ltd. The agency also affirmed the bank's existing ratings, including its national long-term rating at AA+(ind), term deposit program at tAAA(ind), Rs.450 million subordinated debt (lower tier 2) program at AA+(ind), Rs.500 million upper tier 2 subordinated issue at AA(ind), national short-term rating at F1+(ind), individual rating at C/D and support rating at 5.

The outlook is stable.

The subordinated debt being raised is part of the bank's capital raising program aimed at maintaining the total capital adequacy ratio in excess of 11%, even as loans continue to grow by more than 50% year-on-year, Fitch said. The agency said it previously affirmed the bank's outstanding ratings based on its strong financials and the dominant position of some of its group companies in the Indian financial services sector.

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