Fitch downgrades ICICI Bank, revises Axis Bank rating to negative

Axis Bank's capital buffers are less comfortable for its current rating despite raising of fresh capital

Fitch has downgraded its support rating for ICICI Bank from ‘2’ to ‘3’ and revised the outlook on Axis Bank to ‘negative’ from ‘stable’.
 
The outlook on ICICI Bank is, however, ‘stable’.
 
Support ratings reflect expectation of a moderate probability of extraordinary state (government) support, if required. This is due to private ownership and lower systemic importance compared to larger banks.
 
The revision in ICICI’s support rating takes into account the constrained finances. A large number of weak government-owned banks — particularly those which are systemically important — will get priority in terms of timeliness of government