Axis Bank stock gains after Fitch affirms rating at 'BB+'

Private lender Axis Bank's stock rose as much as 2.41% to Rs 666.55 after Fitch Ratings affirmed the bank's long-term issuer default rating (IDR) at 'BB+'.

The ratings agency has maintained 'Negative' on the bank's long-term IDR.

Fitch Ratings said that Axis' long-term IDR of 'BB+' is support driven and linked to India's sovereign rating (BBB-/Negative). It is driven by its government support rating (GSR) of 'bb+', which is higher than the viability rating (VR) of 'bb'.

The GSR is one notch below the sovereign, and reflects Fitch's expectation that there is a moderate likelihood of extraordinary state support to Axis, if required.