Money & Banking

India Ratings revises Yes Bank ratings to ‘Evolving’ from negative

Our Bureau Mumbai | Updated on March 19, 2020

Scrip down 9%

In some reprieve for the beleaguered private sector lender, India Ratings and Research has revised the rating watch on Yes Bank’s Long-Term Issuer Rating of ‘IND BB-’ to Rating Watch Evolving (RWE) from Rating Watch Negative (RWN).

The bank informed the bourses in a regulatory filing on Thursday.

“The revision of the rating watch to evolving follows the systemic support Yes Bank has received recently in terms of both equity and liquidity from the new set of investors and the regulator for its reconstruction,” India Ratings said, adding that the rating also considers the pressure that could show up on the liabilities once the regulator-imposed moratorium is lifted.

“The success of the resolution plan over a reasonable timeframe in the agency’s opinion and the ability of the bank to maintain reasonable liability profile to run its business profitably could lead to the resolution of the RWN,” it further said.

Yes Bank branches resumed normal operations on Thursday after the Reserve Bank of India lifted the moratorium on the bank on Wednesday.

However, the bank’s scrip was down by over 9 per cent in intra-day trading on BSE after its promoter Madhu Kapur pledged an additional 0.098 per cent or 25 lakh share of her family's shareholding of 6.87 per cent in the bank.

Published on March 19, 2020

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