Moody's rates Axis Bank bonds Baa2

Moody's Investors Service said it assigned a Baa2 rating to the dollar-denominated senior unsecured bonds to be issued by Axis Bank Ltd. (C-/Baa2/Prime-2) under its €2 billion updated medium-term note program. The exact amount of the issuance has not been decided.

The outlook is stable.

The proceeds will be used for Axis Bank's overseas operations and for general corporate purposes.

The agency said the rating is derived from Axis Bank's C- bank financial strength rating, which represents the bank's standalone creditworthiness, and reflects its good and rapidly growing domestic franchise as the third-largest private-sector bank in India, comfortable liquidity position, strong capitalization levels and satisfactory recurring profitability.

On the other hand, the rating takes into consideration the challenge Axis Bank faces in maintaining its excellent asset quality given the growing trend in loan delinquencies in India as a result of the economic slowdown and the seasoning of the bank's loan book, Moody's said.

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