In an exchange filing made after market hours yesterday, Yes Bank CARE downgraded the rating on infrastructure bonds to A/Negative {from A+ (Credit Watch with Developing implications) and Negative outlook assigned}.
The outlook for the ratings is ‘Negative’ considering the uncertainty related to equity raising, which is critical for the bank to maintain adequate capital buffers over the minimum regulatory requirement as well as fund future growth of the bank.
Offering a rationale for the rating downgrade, the ratings agency said that the revision of ratings assigned to the debt instruments of YES Bank factors in more than expected delay in raising core equity capital.
The outlook also considers slippages that are likely to continue in H2 FY20 and muted recoveries from non-performing assets, it added.
Yes Bank (YBL) is a new generation private sector bank. The number of branches and ATM (including Bunch Note Acceptors) stood at 1,120 (FY18: 1,100) and 1,456 (FY18: 1,724) respectively as on March 31, 2019.
