Mumbai: Moody's Investors Service on Tuesday placed Yes Bank Ltd’s foreign currency issuer rating of Ba1 under review for downgrade. The credit rating agency said that the review for downgrade takes into account expectation that the ongoing liquidity pressures on Indian finance companies will negatively impact the credit profile of Yes Bank, given the bank's sizeable exposure to weaker companies in the sector. If Yes Bank cannot raise the capital, its loss absorbing capacity and therefore financial profile will be under pressure," said Moody’s. In its rating action, Moody's has maintained the negative adjustment for corporate behavior for Yes Bank, which results in a one notch adjustment to the bank's standalone credit profile when compared to the bank's financial profile. The credit rating agency said that given the recent changes at the bank, its corporate behavior can gradually improve.

Source: Mint June 11, 2019 10:07 UTC