Ind-Ra downgrades YES Bank on inadequate equity infusion; places on RWN

India Ratings and Research (Ind-Ra) has downgraded YES Bank’s Long-Term Issuer Rating from “A+” to “A”, because of inadequate and slow equity infusion. 

The fresh capital is critical for providing sufficient cushion for the credit cost impact of its stressed asset pool. Ind-Ra has considered equity infusion of $1.0-1.2 billion in the next few weeks.

In a similar move, ICRA has downgraded rating on YES Bank’s tier-II bonds from “A+” to “A”.  The downgrade is on the basis of continued uncertainty regarding the timing and extent of capital raise. 

The level of investor interest, amid correction in the stock and receipt of regulatory