Axis Bank’s LT FCR and BSR Outlook Revised to Negative Following Change in Sovereign Risk Assessment

Ref: IN050 20 PBK 00- 0 1 5 May 2020

Axis Bank ’s LT FCR and BSR Outlook Revised to Negative Following Change in Sovereign Risk Assessment

Capital Intelligence Ratings (CI Ratings or CI ) today announced that it has revised the Outlook on the Long-Term Foreign Currency Rating (LT FCR) and the Bank Standalone Rating (BSR) of Axis Bank Ltd (ABL) to Negative from Stable . This follows a change in CI Ratings’ internal assessment of the creditworthiness of the Indian sovereign, and reflects our expectation that India’s economy and public finances could deteriorate over the next 12 months due to the adverse financial impact of the coronavirus (Covid-19) pandemic. Moreover, a weaker operating environment could negatively impact the asset quality and profitability of the banking sector. Since the Bank ’s LT FCR is clo sely aligned with sovereign risk, any change in our internal assessment of sovereign credit risk for India would also impact…