Fitch rates IndusInd Bank bonds A(ind)

Fitch Ratings said it assigned an A(ind) national long-term rating to India-based IndusInd Bank Ltd.'s Rs. 1.65 billion upper tier II bonds and affirmed the bank's A+(ind) national long-term rating, F1+(ind) national short-term rating, A+(Ind) Rs. 5.575 billion subordinated debt, A(ind) Rs. 2 billion upper tier II bonds, D individual rating and 5 support rating.

The outlook is negative, reflecting the bank's low equity-to-assets ratio relative to its peers and its weak operating performance, the agency said. Although IndusInd Bank's regulatory CAR has remained satisfactory (10.3% at September) on account of issuance of tier 2 debt and the temporary sale of assets from its balance sheet, Fitch said an equity infusion is important to support the bank's long-term improvement in performance.

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