Fitch cuts IndusInd Bank to A(ind)

Fitch Ratings said it downgraded IndusInd Bank Ltd.'s national long-term rating to A(ind) from A+(ind), national short-term rating to F1(ind) from F1+(ind), Rs.5.575 billion lower tier 2 subordinated debt program to A(ind) from A+(ind), Rs.3.65 billion upper tier 2 bonds to A-(ind) from A(ind) and Rs.2.5 billion certificates of deposit program to F1(ind) from F1+(ind). The agency also said it affirmed its individual rating at D and support rating at 5.

The outlook is stable.

The downgrade reflects the company's weakened financials compared to its peers and continued vulnerability in a rising interest rate scenario, Fitch said.

The stable outlook is based on management's initiative to improve the bank's financials and reduce its sensitivity to interest rate movements through higher share of floating-rate assets and low cost deposits, the agency said.

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