InvestorQ : Why has Moody’s upgraded Yes Bank and what could be the implications?
Archita Jajjoo made post

Why has Moody’s upgraded Yes Bank and what could be the implications?

Answer
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Rashi Mehra answered.
1 month ago


Moody’s has upgraded Yes Bank’s long-term foreign currency issuer rating by one notch. This is in the light of the recent capital of Rs.15,000 crore raised by Yes Bank, which nearly doubled the capital base of the bank. Moody’s upgraded Yes bank’s long-term foreign and local currency deposit ratings from Caa1 to B3 as well as its foreign currency senior unsecured MTN programme too.

Post the recent issue of Rs.15,000 crore, Yes Bank’s common equity Tier-1 ratio will now more than double from 6.6% to 13.4% based on the capital position of the bank as of the end of June. Now its capitalization is at par with other banking peers. The significantly improved solvency ratio also worked to its advantage.