Moody's slashes YES Bank's rating to junk status; bonds see record drop

Bank is in midst of management transition amid resignations

Indian lender Yes Bank Ltd. tumbled by a record in the dollar bond market after Moody’s Investors Service cut its credit rating to junk, making the lender a so-called fallen angel.

Losing an investment-grade score is rare among Indian private-sector banks. The lender is now the only junk-rated one among four such lenders -- HDFC Bank Ltd., Axis Bank Ltd., and ICICI Bank Ltd. -- tracked by Moody’s.

The credit assessor attributed its downgrade on Tuesday to governance concerns. The bank is in the midst of a management transition with co-founder and Chief Executive Officer Rana Kapoor set to step down by