YES Bank on Moody’s down­grade watch

The Hindu Business Line - - FRONT PAGE -

Moody’s has placed YES Bank’s rat­ings un­der re­view for a down­grade. It has raised con­cerns over the high exposure of the pri­vate sec­tor lender to the strug­gling NBFC and real es­tate sec­tors.

“The re­view for down­grade takes into ac­count Moody’s ex­pec­ta­tion that the on­go­ing liq­uid­ity pres­sures on In­dian fi­nance com­pa­nies will neg­a­tively im­pact the credit pro­file of YES Bank, given the bank’s size­able exposure to weaker com­pa­nies in the sec­tor,” the agency said in a state­ment on Tues­day.

Moody’s said it ex­pects sig­nif­i­cant pres­sure on the bank’s as­set qual­ity, prof­itabil­ity and cap­i­tal po­si­tion due to these head­winds, but said the proac­tive pro­vi­sion­ing in the March quar­ter will cush­ion the im­pact of the an­tic­i­pated stress.

In a sep­a­rate de­vel­op­ment, non-ex­ec­u­tive in­de­pen­dent direc­tor Mukesh Sab­har­wal has re­signed from the bank’s board a day ahead of its an­nual gen­eral meet­ing.


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