Moody's rates Axis bonds Baa2

Moody's Investors Service said it assigned a provisional Baa2 rating to the senior unsecured bonds to be issued by Axis Bank Ltd. under its €2 billion medium-term note program.

The outlook is stable.

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

The rating is derived from Axis Bank's C- bank financial strength rating and its strong financial fundamentals as well as its rapidly growing domestic franchise as the third largest private-sector bank in India, Moody's said.

The rating also reflects the bank's comfortable liquidity position, strong capitalization levels and its satisfactory recurring profitability, Moody's said.

The agency said that the rating also takes into consideration the challenges Axis Bank faces in maintaining its strong capital levels while growing its loan book quite rapidly and further reducing the volume of its restructured loans.

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