Fitch affirms Axis Bank's IDR at BB-plus with stable outlook, downgrades VR

Fitch has affirmed Axis Bank's long-term issuer default rating (IDR) at BB-plus with a stable outlook but downgraded the bank's viability rating (VR) by one notch to bb from bb-plus.

The rating actions are driven by rapid deterioration in the operating environment for banks in India following the coronavirus pandemic and measures to contain its spread.

Fitch has cut its forecast for India's GDP growth in the financial year ending March 2021 (FY21) to 0.8 per cent from a pre-pandemic forecast of 5.1 per cent (FY20: 4.9 per cent).

"The revised estimate highlights the impact that the sharp slowdown in