Moody’s rates Axos Baa3

Moody’s Investors Service said it assigned a Baa3 rating to Axos Financial Inc. and its lead bank Axos Bank.

Also, the agency assigned a Baa3 rating to Axos Financial’s planned subordinated debt offering.

“Axos’ profitability has been a credit strength historically bolstered by its solid operational efficiency, high net interest margin (NIM), and low credit costs. Moody’s views its operational efficiency as a competitive advantage that allows the bank to invest more in digitization than traditional banks with legacy infrastructure. Moody’s believes this will allow Axos to be more nimble in adapting, and in some ways, leading the way in the future of banking,” the agency said in a press release.

The outlook is stable because Moody’s said it sees the company’s credit file staying steady over the next 12 to 18 months.

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