India ratings downgrade Yes Bank’s rating from A+ to A

Yes Bank’s share price fell down by nearly 4 per cent in Thursday’s early trade after India Ratings downgraded it’s long-term rating from "A+" to "A". Moody's Investors Service had downgraded the bank's long-term ‘foreign-currency issuer rating’ from Ba3 to B2 previously. 

India Ratings stated in its report that, "The downgrade reflects the inadequate progress as per Ind-Ra's expectations with respect to the quantum and pace of equity infusions, which is critical for providing sufficient cushion for the credit cost impact of the stressed asset pool."

The statement further added that "Although the liquidity position of the bank seemed adequate at end-September 2019, Ind-Ra believes that, in the absence of improvements on the capital side, the ability of the bank to manage its asset and liability maturities might be tested further.”

Also Read | Yes Bank Says Eight Investors Ready With USD 2 Billion Funding

Yes Bank on the BSE 

Yes Bank’s shares were trading at Rs 45.40, 2.89 per cent down on Bombay Stock Exchange at 9.20 a.m. today. Yes Bank’s share price slipped 3.74 per cent down and plunged to an intraday low of Rs 45 per piece, with 34 lakh and 658 lakh shares trading on BSE and NSE counters today.

Also Read | Sensex Rises 169 Points As Banking, Metal Stocks Advance

BSE data suggested 55 per cent buying against 45 per cent selling on the stock price. The share has declined almost 30 per cent in one month and 75 per cent compared to last year, although it had increased 6 per cent in the last week.

The bank said that it hopes for an improvement in the March quarter in the revenue on December 13 and also added that the third quarter would remain subdued. The bank gave economic slowdown and slow demand as reasons weighing on their corporate earnings during the second quarter of 2019-20.

Yes Bank had stated in a note on 'Corporate Earnings and Sectoral Outlook: Q2 FY20' that their aggregate revenue recorded a downfall of 3.5 per cent year-on-year compared to the 3 per cent expansion in the first quarter of the same financial year.

Also Read | Yes Bank Shares Decline 5%, Stocks Fall 24% In 8 Days

(With Inputs from ANI)