Mumbai: Global ratings agency Moody’s Investor Service on Thursday downgraded the credit ratings of Yes Bank with a negative outlook.
The rating agency attributed the downgrade to its expectation that “the bank’s pool of potential stressed assets and low loss absorbing buffers against those assets - will add pressure to its funding and liquidity, creating additional risks to its standalone credit profile or BCA”.
The downgrade gains significance as it comes just ahead of the Yes Bank’s board meeting on December 10 to finalise its fund raising plans.
“The rating actions reflect Moody’s view that Yes Bank’s funding and liquidity compares weakly to other rated private sector peers in India, and could come under pressure, if the bank cannot strengthen its solvency in the next few quarters,” it said. (IANS)