However, according to a Bloomberg report, YES Bank
is likely to reject the offer that made up more than half of its planned $2 billion capital raising, and is talking to institutional investors about making up the shortfall. READ HERE
Global firm Moody's notes that there are significant execution risks around the timing, price and regulatory approvals required for offered received by YES Bank. Subsequently, on December 5, the global rating agency downgraded the bank’s long-term foreign currency rating from “Ba3” to “B2” with negative outlook.
Moody's downgraded the ratings on expectation that the bank's pool of potential stressed assets and low loss absorbing buffers against those assets — will add pressure to its funding and liquidity, creating additional risks to its standalone credit profile or Baseline Credit Assessment (BCA).
Given the negative outlook, Moody's is unlikely to upgrade the bank's ratings over the next 12-18 months. Nevertheless, Moody's could change the ratings outlook to stable, if YES Bank concludes a material capital raise that strengthens its loss-absorbing buffers, the rating agency noted.
At 10:51 am, YES Bank erased partial intra-day losses and was trading 2 per cent lower at Rs 55 on the BSE. In comparison, the S&P BSE Sensex was down 0.21 per cent at 40,402 points. A combined 100 million equity shares have changed hands on the counter on the NSE and BSE so far.