Moody's cuts YES Bank long term foreign currency issuer rating; stock falls

Moody's said it could change the rating outlook to stable if the private lender adequately provides for its bad assets

Credit rating agency Moody’s on Wednesday downgraded private lender YES Bank’s long-term foreign currency issuer rating by a couple of notches, from Ba1 to Ba3. It cited lower-than-expected capital raised by the bank recently and its ability to raise further capital, considering the huge hit the bank has taken in its share price.

The rating downgrade resulted in YES Bank’s stock price going down further. The stock price tumbled more than 7 per cent to close at Rs 59.50.

Moody’s also downgraded YES Bank’s long-term foreign and local currency bank deposit ratings to Ba3, from Ba1, and maintained a negative