Yes Bank bonds got upgrades from India Ratings and Crisil
Yes Bank shares rose close to 5 per cent in Friday’s morning trade after two rating agencies – India Ratings and Crisil upgraded the private lender’s bonds. The Yes Bank shares hit the intra-day high of Rs 15.41, up 4.75 per cent from the previous closing in early trade. At 2 pm, the stock had pared most of its gains but was still more than 1.50 per cent in the green.
Late on Thursday, in a regulatory filing, Yes Bank informed the exchanges about the Crisil upgrade. Crisil upgraded its rating on Rs 20,000 crore certificates of deposit of Yes Bank to ‘A2-plus’ from ‘A2’ besides reaffirmed its ‘BBB/Stable’ rating on the bank’s tier two bonds under Basel III and infrastructure bonds.
“The upgrade in short term rating reflects an improvement in funding and liquidity profile of the bank with a gradual increase in its deposit base as well as sizeable capital raised recently,” it said.
According to news agency ANI, Yes Bank’s total deposits increased to Rs 1.17 lakh crore as on June 30 from Rs 1.05 lakh crore as on March 31. Further, the bank has raised Rs 15,000 crore through a follow-on public offer in July, significantly improving its capital position.
Meanwhile, India Ratings upgraded Yes Bank’s long-term issuer rating to ‘BBB’ from ‘BB-‘ while resolving the rating watch evolving. The outlook is stable. The rating agency said the multi-notch upgrade and the resolution of rating watch evolving reflect a significant improvement in Yes Bank’s profile and operating metrics post its reconstruction in March.
India Ratings added that it expects the bank to continue improving its operating metrics and liability profile over the next few quarters as it continues making provisions for COVID-19 related impact on its portfolio.
