Yes Bank stocks declined over 8% on Monday amid a sell off in the equity market due to global and domestic factors, and rating agency Moody’s extending its review for a rating downgrade.
The review for downgrade was initiated on June 11, 2019, as the rating agency was expecting ongoing liquidity pressures on NBFCs to negatively impact the bank’s credit profile, given its sizeable exposure to weaker companies in the sector.
Moody’s expects that Yes Bank will remain dependent on external capital raising to help maintain its capital level above the regulatory requirements.
