 "YES Bank cracks 6% after CARE Ratings downgrades promoter Morgan Credits")
Shares of YES Bank continued to reel under pressure, cracking up to 6 per cent to Rs 60 per share, on the BSE in the morning deals on Thursday, extending its 7 per cent fall in past three days after CARE Ratings downgraded ratings of non-convertible debentures (NCDs) of Morgan Credits Private Limited (MCPL), one of the promoter entities of the private sector lender. The stock hit a multi-year low of Rs 53 on August 22, 2019 in the intra-day trade.
MCPL, which holds 3.03 per cent stake in the private lender, was downgraded to ‘BBB-’ from ‘A-’ due to fall in the stock price of the underlying shares of YES Bank held by it. MCPL with its associate entities / individuals held 10.62 per cent stake in YES Bank as on March 31, 2019.
The rating is based on the internal credit enhancement in the form of pledge of unencumbered listed shares of YES Bank held by MCPL or MCPL’s promoters and / or their relatives in favour of the Debenture Trustee.
“The revised rating considers the moderation in cover due to fall in the stock price of the underlying shares of YBL,” CARE Ratings said in a statement on September 17.
MCPL, which holds 3.03 per cent stake in the private lender, was downgraded to ‘BBB-’ from ‘A-’ due to fall in the stock price of the underlying shares of YES Bank held by it. MCPL with its associate entities / individuals held 10.62 per cent stake in YES Bank as on March 31, 2019.
The rating is based on the internal credit enhancement in the form of pledge of unencumbered listed shares of YES Bank held by MCPL or MCPL’s promoters and / or their relatives in favour of the Debenture Trustee.
“The revised rating considers the moderation in cover due to fall in the stock price of the underlying shares of YBL,” CARE Ratings said in a statement on September 17.
