Moody's gives investment grade rating to Axis Bank's $500 million bonds

Kolkata: Moody's Investors Service has assigned an investment grade rating to Axis Bank's proposed $500 million senior unsecured notes, to be issued under the bank's $5 billion global medium term note program.

The rating given is Baa3, which is same as India's sovereign rating. This is the lowest level in investment grade.

Moody's said that the outlook on the ratings is stable.

The drawdown will be listed on the London Stock Exchange and the Singapore Stock Exchange.

Moody's said the rating is anchored on Axis Bank's baseline credit assessment (BCA), which drew support from the bank's strong commercial and retail banking franchise. Axis is India's the third-largest private-sector bank with a 3.8% share of system deposits at end-March 2017.

"Axis Bank's deposit ratings could be upgraded if both the bank's BCA and the Indian sovereign rating are upgraded," the rating firm said.