Fitch Ratings For Axis Bank Revised From Stable To Negative

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    International credit rating agency Fitch renewed its Long-Term Issuer Default Ratings (IDRs) and Viability Ratings on private lenders ICICI Bank and Axis Bank. The ratings on the two banks have been revised to 'BBB-' and 'bbb' respectively.

    Fitch Ratings For Axis Bank Revised From Stable To Negative
     

    Explaining its reasons for the negative review on Axis Bank, Fitch said, "The Negative Outlook on Axis's IDR (issuer default ratings ) reflects rising pressure on its standalone profile relative to banks with a Viability Rating of BBB-, stemming from heightened asset-quality stress and weak earnings. Its capital buffers are less comfortable for its current rating despite raising fresh capital."

    It also downgraded ICICI's Support Rating to 3 from 2, and revised its Support Rating Floor to BB+, from BBB-.

    Overall, Fitch had a negative outlook on the whole banking sector that majorly reported losses for the March 2018 quarter. For the same period, Axis bank reported its first-ever quarterly loss. Many large private sector bank earnings were also hurt.

    In its press release, it showed a stable outlook on ICICI Bank, stating that its capital buffers are better despite financial deterioration similar to Axis Bank in the past few years.

    Read more about: axis bank icici bank
    Story first published: Friday, June 15, 2018, 16:44 [IST]
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