India Ratings and Research (Ind-Ra) has affirmed Axis Bank’s long-term issuer rating at ‘AAA’ with a stable outlook and Short-Term Issuer Rating at ‘A1+’. The agency has also affirmed the bank’s Rs 3700 crore lower tier 2 subordinated debt at ‘AAA’, Rs 307.50 crore upper Tier 2 subordinated debt at ‘AA+’ and its Rs 214 crore perpetual Tier 1 debt programme at ‘AA+’.
The affirmation factors in the bank’s diverse earnings profile and strong profitability, together with a high core capital buffer that is likely to be maintained. The bank’s strategy of reducing concentration in its corporate loan business and focusing on capturing client cash flows may reduce cyclical asset quality pressures in the medium term.
