Fitch affirms Axis Bank

Fitch Ratings said it affirmed Axis Bank Ltd.'s long-term foreign-currency issuer default rating at BBB-, along with the short-term foreign-currency issuer default rating at F3 and viability rating at BBB-.

The agency also said it affirmed its foreign-currency senior debt rating at BBB-, national long-term rating at AAA(ind), Rs. 57 billion subordinated lower tier 2 debt program at AAA(ind), Rs. 6.53 billion subordinated upper tier 2 debt program at AA+(ind) and Rs. 2.14 billion perpetual tier 1 debt program at AA+(ind).

The outlook is stable.

The affirmation reflects the bank's strong franchise, good asset quality and sound profitability, Fitch said.

The bank has a leading position in certain niches, leading to a high fee income, the agency said.

While the high growth has negatively impacted the bank's capitalization and funding, Fitch said those are likely to improve with the expected moderation in loan growth.

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