Moody's downgrades Yes Bank's ratings, assigns negative outlook

Global rating agency says potentially stressed assets and low loss-absorbing buffers may add pressure to the bank's funding and liquidity, and create additional risks to its standalone credit profile

Global rating agency Moody's on Thursday downgraded Yes Bank’s long-term foreign currency rating from “Ba3” to “B2” as potentially stressed assets and low loss-absorbing buffers may add pressure to its funding and liquidity. This may create additional risks to its standalone credit profile.

Moody's expects Yes Bank's common equity tier-1 (CET1) ratio of 8.7 per cent at the end of September 2019 to come under significant pressure, unless the bank can raise new capital in the next few quarters.

Yes Bank has received offers from a number of financial investors to invest up to $2 billion through new equity capital into the