ICRA, CARE downgrade Yes Bank's rating on upper tier-2 bonds to D

While the bank has adequate liquidity for coupon payment as per Basel guidelines coupon is not payable if the CRAR is below the regulatory requirement

Rating agencies ICRA and CARE have downgraded Yes Bank's rating on Rs 32,611.7 crore upper tier-2 bonds to D.

ICRA said the rating downgrade factors in specific features of the instrument in which debt servicing is linked to the bank meeting the regulatory norms on capitalisation, that is capital to risk assets ratio (CRAR) of 9 per cent.

In case the bank reports a loss, the coupon or redemption can be paid with the prior approval of the Reserve Bank of India (RBI) provided that on such payment the CRAR remains above 9 per cent.

While the bank has adequate liquidity for coupon