Moody's places Yes Bank rating under review

Moody's pointed out that the potential credit risk to the bank's senior creditors is uncertain

A Moody’s sign at the company’s corporate headquarters in New York. File

Moody's Investors Service has today placed Yes Bank Limited's long-termforeign currency issuer rating of B2 under review, with the direction uncertain. At the same time, Moody's has downgraded Yes Bank's Baseline Credit Assessment (BCA) and adjusted BCA to caa2 from b3.

"The placing of Yes Bank's deposit rating of B2 under review reflects Moody's expectation that the bank's standalone viability is getting increasingly challenged by its slowness in raising new capital," the rating agency said. 

Moody's pointed out that the potential credit risk to the bank's senior creditors is uncertain, because there are a number of diverse scenarios that could affect the rating in either positive or negative directions.

It further said that because the viability of the bank absent a large capital injection is in question, Moody's has downgraded the bank's standalone credit profile or its BCA to caa2 from b3.