YES Bank slumps 4% as Moody’s downgrades FCBs ratings

Shares of YES Bank slumped over 4 per cent in early trade on Wednesday as Moody’s Investors Service downgraded its foreign currency borrowings (FCBs) by two notches to non-investment grade yesterday on the back of a series of resignations from the Board.

The resignations, when seen in conjunction with RBI's September directive to restrict the term of the bank's MD & CEO Rana Kapoor till January 31, 2019, have raised concerns over corporate governance, the rating agency said. The agency also changed the outlook to negative from stable.

Moody's has downgraded foreign currency issuer rating to 'Ba1' from 'Baa3', and also the bank's baseline credit assessment (BCA) and adjusted BCA to 'ba2' from 'ba1'.


Meanwhile, the shares of YES Bank opened at Rs 181 on BSE against its previous closing of Rs 183.15.