Moody's to review YES Bank for downgrade over exposure to weaker NBFCs

As of March 2019, Yes Bank's exposure to Indian housing finance companies and NBFCs was 6.4% of its total exposure

Global rating agency Moody’s on Tuesday placed YES Bank Limited's foreign currency issuer rating of Ba1 under review for downgrade as liquidity pressures on finance companies may negatively impact credit profile of Indian private lender.

YES Bank has sizeable exposure to weaker companies in the financial sector (non-banking finance companies and housing finance firms).

As of March 2019, YES Bank's exposure to Indian housing finance companies (HFC) and non-bank finance companies (NBFC) represented 6.4 per cent of its total exposure, Moody’s said in a statement.

In addition, the lender had a seven per cent direct exposure to commercial and residential