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Moody’s places Yes Bank’s ratings under review

Moody’s has downgraded Yes Bank’s Baseline Credit Assessment (BCA) and adjusted BCA to caa2 from b3.

Moody’s places Yes Bank’s ratings under review

Moody's review. (Photo: AFP)

Moody’s Investors Service on Friday placed Yes Bank’s long-term foreign currency issuer rating of B2 under review, with the direction uncertain, citing “slowness in raising new capital”. It has also placed the bank’s long-term foreign and local currency bank deposit ratings of B2, and its foreign currency senior unsecured MTN program rating of (P) B2, under review.

Explaining the rationale of putting Yes bank’s rating under review, the US-based agency said, “The placing of Yes Bank’s deposit rating of B2 under review reflects Moody’s expectation that the bank’s standalone viability is getting increasingly challenged by its slowness in raising new capital.”

Yes Bank is in discussions with a number of investors to raise new equity capital, which would be credit positive if executed successfully, Moody’s said adding that “If the bank successfully recapitalises and repairs and cleans its balance sheet, its ratings could stabilise or face upward pressure”.

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Moody’s has downgraded Yes Bank’s Baseline Credit Assessment (BCA) and adjusted BCA to caa2 from b3.

It further said that “because the viability of the bank absent a large capital injection is in question, Moody’s has downgraded the bank’s standalone credit profile or its BCA to caa2 from b3.”

Price of Yes Bank shares was at Rs 38.95, down by 2.50% on the NSE at 1.52 pm and at BSE it was low as 2.50% at Rs 38.95.

As per the reports, its share price fell nearly 7% during intraday trade on Friday.

(With input from agencies)

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