Fitch Rates Axis Bank's USD500m Green Bonds Final 'BBB-'
OREANDA-NEWS. Fitch Ratings has assigned India-based Axis Bank Ltd's (BBB-/Stable) USD500m senior unsecured notes due June 2021 a final rating of 'BBB-'.
This follows the completion of the securities issue, as well as the receipt of final documents conforming to information previously received. The final rating is the same as the expected rating assigned on 22 May 2016.
The notes will constitute direct, unconditional, unsubordinated and unsecured obligations of the issuer. They will at all times rank pari passu among themselves and with all other unsubordinated and unsecured obligations of Axis Bank.
The tenor of the issue is five years and the notes are issued by Axis Bank's Dubai International Financial Centre branch.
KEY RATING DRIVERS - SENIOR DEBT
The senior unsecured instruments are rated at the same level as the bank's Issuer Default Rating (IDR), in accordance with Fitch's criteria. Axis Bank's IDR is equal to its Viability Rating (VR) of "BBB-".
Axis Bank is the third-largest private bank in India by asset size, and Fitch expects a moderate probability of support from the state, if required, as reflected in its Support Rating of '3' and Support Rating Floor of 'BB+'.
For more details on Axis Bank's ratings and credit profile, see "Fitch Affirms Ratings on 9 Indian Banks; Downgrades PNB's VR", dated 31 August 2015, and Credit Update on Axis Bank dated 27 October 2015 and "Axis Bank Ltd. Ratings Navigator", dated 30 September 2015, available at http://www.fitchratings.com/.
RATING SENSITIVITIES - SENIOR DEBT
A change in Axis Bank's IDR will have an impact on the securities' rating.
Axis Bank's other ratings are unchanged and are as follows:
- Long-Term IDR 'BBB-'; Outlook Stable
- Short-Term IDR 'F3'
- Viability Rating 'bbb-'
- Support Rating '3'
- Support Rating Floor 'BB+'
- USD5bn global medium-term note programme 'BBB-'
- USD1.75bn senior unsecured notes 'BBB-'