Rating agency Icra has downgraded Yes Bank's tier-I and tier-II bonds and infrastructure debt on deterioration in the credit quality of large ticket borrowers.
The rating action has also factored in further weakening in core equity (CET-I) capital cushion, due to voluntary provisions and consequent losses in Q4FY19, Icra said in a statement. Icra has downgraded the lender's tier-I bond from "AA-" to "A" and tier-II bonds from "AA" to "AA-" The outlook is negative on both bonds.
On the positive side, the bank, under its new MD& CEO, has moved towards improved focus on granularisation of liabilities as the