OREANDA-NEWS. Fitch Ratings has assigned India-based Axis Bank Ltd.'s (Axis Bank; BBB-/Stable) USD250m senior unsecured notes due May 2020 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 3 March 2015.

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 (other than subordinated obligations) of Axis Bank. The notes are issued by Axis Bank's Dubai International Financial Centre (DIFC) branch.

KEY RATING DRIVERS

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 Issuer Default Rating (IDR) of 'BBB-' is driven by its Viability Rating (VR) of 'bbb-', which denotes its standalone creditworthiness. The VR reflects the strength of its franchise, satisfactory asset quality, improved capitalisation and growing profitability. Axis Bank's increased focus on retail customers has helped it to diversify its loan and funding mix, and reduce concentration risks.

Axis Bank is the third-largest private bank in India by asset size and Fitch expects there will be moderate probability of support from the state, if required, as reflected in its Support Rating of '3' and Support Rating Floor of 'BB+'.

RATING SENSITIVITIES

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+'
EUR3bn medium-term note programme 'BBB-'
USD2.1bn senior unsecured notes 'BBB-'