Icra downgrades YES Bank's bonds as quality of large borrowers dwindles

Rating action also factors in further weakening in core equity capital cushions due to voluntary provisions and consequent losses in Q4FY19

Rating agency Icra has downgraded Yes Bank's tier-I and tier-II bonds and infrastructure debt on deterioration in the credit quality of large ticket borrowers. 

The rating action has also factored in further weakening in core equity (CET-I) capital cushion, due to voluntary provisions and consequent losses in Q4FY19, Icra said in a statement. Icra has downgraded the lender's tier-I bond from "AA-" to "A" and tier-II bonds from "AA" to "AA-" The outlook is negative on both bonds.

On the positive side, the bank, under its new MD& CEO, has moved towards improved focus on granularisation of liabilities as the