Yes Bank stock slumps over 5 pc on ratings downgrade
Yes Bank shares tumbled over 5 per cent in morning deals on Friday, hit by ratings downgrade by Moody's Investors Service. The lender's shares were trading at 58.75 apiece, down 5.39 per cent on the BSE. Likewise, the stock dived 5.23 per cent to Rs 58.85 per unit on the NSE. Global ratings agency Moody's Investors Service on Thursday downgraded the ratings on the private sector lender, with a negative outlook, expressing concerns on its asset quality troubles and the shrinking capital buffers.
The rating downgrade comes days before the board of the bank is slated to meet on December 10 to finalise the fund raising plans. It also said the bank's claim to have received investor interest to the tune of USD 2 billion has "significant execution risks around the timing, pricing as well as regulatory approvals. Yes Bank's funding and liquidity compares weakly to other rated private sector peers, and can come under pressure if the bank failed to strengthen its solvency in the next few quarters," it added.
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