Private lender Yes Bank said on Saturday that rating agency ICRA has downgraded its tier-I and tier-II bonds and infrastructure debt following deterioration in the credit quality of large ticket borrowers.
The agency downgraded the bank's tier-I bond from 'AA-minus' to 'A' and tier-II bonds from 'AA' to AA-minus.'
The outlook is negative on both bonds, the bank said.
ICRA's rating action has also factored in further weakening in core equity (CET-I) capital cushion, due to voluntary provisions and consequent losses in fourth quarter of 2018-19.
On April 26, the company reported quarterly loss of Rs 1,507 crore as compared to Rs 1,179 crore in the quarter ended March 2018. Net non-performing assets grew from 1.18 to 1.86 per cent quarter-on-quarter.
Gross slippages, or accumulation of fresh bad loans, came in at Rs 3,481 crore during the quarter ended March 31, said Yes Bank.
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Of this, Rs 552 crore was due to exposure to debt-ridden and now-grounded Jet Airways. About Rs 529 crore was on account of stressed infrastructure conglomerate IL & FS.
Australian brokerage Macquarie also recently double-downgraded Yes Bank stocks to 'underperform' and cut target price by 40 per cent to Rs 165, which is one of the lowest.