Yes Bank shares fall after ICRA, CARE ratings downgrade

As of last close, Yes Bank shares had fallen 48.6% this year.
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Yes Bank shares fell as much as 9% to ₹147.00 apiece on the BSE after ICRA and CARE Ratings downgraded the lender’s debt instruments

As of last close, Yes Bank shares had fallen 48.6% this year.
As of last close, Yes Bank shares had fallen 48.6% this year.

Shares of Yes Bank Ltd plunged to their lowest in over two years on Thursday after credit rating agencies ICRA Ltd and CARE Ratings Ltd downgraded the lender’s debt instruments. India’s fifth largest private-sector lender by assets has had a tumultuous couple of months, with its stock nearly halving in value this year and a number of departures from its board, since the Reserve Bank of India (RBI) cut short chief executive officer Rana Kapoor’s term in September.

Yes Bank shares fell as much as 9% to ₹147.00 in early trade. At 01.40pm, the stock was trading 1.08% lower at ₹159.95 apiece on the BSE while the benchmark Sensex was up 1.02% to 36,081.72 points.

ICRA downgraded domestic long-term ratings of the bank’s senior debt instruments to ‘ICRA AA’ from ‘ICRA AA+’ and its subordinate debt instruments to ‘ICRA AA-’ from ‘ICRA AA’, the bank said late on Wednesday.

Meanwhile, CARE Ratings cut domestic ratings of Yes Bank’s senior debt instruments to ‘CARE AA+’ from ‘CARE AAA’ and subordinate debt instruments to ‘CARE AA’ from ‘CARE AA+’.

Earlier this week, rating agency Moody’s also downgraded the bank’s foreign currency issuer rating and changed its outlook on the bank to “negative’ from ‘stable”, sending its shares lower.

ICRA said Yes Bank’s ratings remain on watch with negative implications, while CARE said ratings remain on credit watch with developing implications.

As of last close, Yes Bank shares have fallen 48.6% this year.

This story has been published from a wire agency feed without modifications to the text.


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