Moody’s Upgrades Yes Bank Rating By A Notch, Outlook Positive
Acting quickly on the fast-evolving capital position under the Reserve Bank of India-proposed restructuring of Yes Bank Ltd., rating agency Moody’s Investors Service on Monday upgraded its ratings with a positive outlook.
Earlier in the day, Yes Bank announced that seven banks led by State Bank of India have invested Rs 10,000 crore, boosting its core capital,
Later, Reserve Bank Governor Shaktikanta Das said if need be the central bank would give additional capital support to the crippled lender.
The central bank had superseded Yes Bank board on April 5 and placed it under an administrator.
“We today upgraded Yes Bank long-term foreign currency issuer and foreign currency senior unsecured MTN programme ratings to Caa1 from Caa3 and (P)Caa1 from (P)Caa3 respectively,” Moody’s said in a late evening statement.
Accordingly, the credit outlook has also been changed to positive from negative.
Caa ratings are below investment grade.