Rating agency Moody’s Investors Service has placed Yes Bank’s various debt instruments under review for downgrade. “The review for downgrade takes into account Moody’s 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,” Moody’s said. According to Moody’s, at the end of March 2019, Yes Bank’s exposure to Indian housing finance companies (HFCs) and non-bank finance companies (NBFCs) represented 6.4% of its total exposure. In addition, Yes Bank had a 7% direct exposure to the commercial and residential real estate sector as of the same date. The rating agency expects significant pressure on the bank’s asset quality and therefore profitability and capital position.

Source: The Hindu June 11, 2019 16:41 UTC