Ratings agency Fitch on Friday said it has revised the outlook of Axis Bank to negative while affirming the rating of BBB-.
“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,” Fitch said.
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings (IDRs) and Viability Ratings of ICICI Bank but downgraded ICICI’s Support Rating to 3, from 2, and revised its Support Rating Floor to BB+, from BBB-.
ICICI’s capital buffers are better even though it has experienced similar financial deterioration in the previous few years, Fitch said.