trending Market Intelligence /marketintelligence/en/news-insights/trending/vHa6N5qDts_vlRP-fbn6rw2 content esgSubNav
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us
In This List

Moody's places Yes Bank's ratings under review with direction uncertain

Blog

Banking Essentials Newsletter - February Edition, Part 2

Podcasts

StreetTalk – Episode 74: Investor sees legs in strong credit performance, US bank stock rally

Blog

Street Talk – Episode 74: Investor sees legs in strong credit performance, US bank stock rally

Blog

The Evolution of ESG Factors in Credit Risk Assessment: Environmental Issues


Moody's places Yes Bank's ratings under review with direction uncertain

Moody's placed Yes Bank Ltd.'s B2 long-term foreign-currency issuer rating and its B2 long-term foreign- and local-currency bank deposit rating under review, with the direction uncertain.

The rating agency said Jan. 16 that it also placed the bank's long-term counterparty risk assessment of B1(cr) and its long-term domestic and foreign-currency counterparty risk rating of B1 under review, with the direction uncertain.

In addition, Moody's downgraded Yes Bank's baseline credit assessment and adjusted baseline assessment to "caa2" from "b3."

The bank's short-term foreign- and local-currency deposit ratings were affirmed at NP, while its short-term counterparty risk assessment was affirmed at NP(cr).

Moreover, the rating agency placed the B1(cr) long-term counterparty risk assessment and the B1 long-term domestic and foreign currency counterparty risk rating of Yes Bank, IFSC Banking Branch Unit on review, with the direction uncertain.

The rating agency said that the placing of Yes Bank's deposit rating of B2 under review reflects its expectation that the bank's standalone viability is getting increasingly challenged by its slowness in raising new capital.

The potential credit risk to the bank's senior creditors is uncertain as there are a number of diverse scenarios that could affect the rating in either positive or negative directions, Moody's added.

The rating agency noted that Yes Bank's baseline credit assessment and adjusted baseline assessment were downgraded as the viability of the bank absent a large capital injection is in question.

Yes Bank is in discussions with a number of investors to raise new equity capital, which would be credit positive if executed successfully, Moody's said, adding that if the bank successfully recapitalizes and cleans its balance sheet, its ratings could stabilize or face upward pressure.