CRISIL, Ind-Ra upgrade Yes Bank's ratings on improvement in funding, liquidity profile

CRISIL, Ind-Ra upgrade Yes Bank's ratings on improvement in funding, liquidity profile

Explaining the rating action, CRISIL said 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

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As of June 2020, Yes Bank has total deposits of Rs 1.17 lakh crore, as against Rs 1.05 lakh crore as on March 31, 2020As of June 2020, Yes Bank has total deposits of Rs 1.17 lakh crore, as against Rs 1.05 lakh crore as on March 31, 2020
BusinessToday.In
  • Aug 28, 2020,
  • Updated Aug 28, 2020 11:40 AM IST

Rating agencies CRISIL and India Ratings (Ind-Ra) have upgraded Yes Bank's infrastructure bonds and other papers on the back of improvement in its funding and liquidity profile recently.

CRISIL upgraded the bank's rating on Rs 20,000 crore certificates of deposit to A2-plus from A2 besides reaffirming its BBB/Stable rating on the private lender's tier two bonds under Basel III and infrastructure bonds.

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Ind-Ra on the other hand also revised upwards the bank's long-term issuer rating to BBB from BB-(minus) while resolving the rating watch evolving.

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CRISIL added that the ratings continue to be supported by the expectation of further extraordinary systemic support from key stakeholders and substantial ownership by the State Bank of India (SBI), which will play a major role in Yes Bank's credit rating in the future.

Meanwhile, Ind-Ra also said that multi-notch upward revision and the resolution of rating watch manifest considerable progress in the bank's profile as well as operating metrics after its reconstruction in March (2020).

The agency expects Yes Bank to continue to better its operating metrics and liability profile over the next few quarters as it continues to make provisions for coronavirus-related impact on its portfolio.

Rating agencies CRISIL and India Ratings (Ind-Ra) have upgraded Yes Bank's infrastructure bonds and other papers on the back of improvement in its funding and liquidity profile recently.

CRISIL upgraded the bank's rating on Rs 20,000 crore certificates of deposit to A2-plus from A2 besides reaffirming its BBB/Stable rating on the private lender's tier two bonds under Basel III and infrastructure bonds.

Advertisement

Ind-Ra on the other hand also revised upwards the bank's long-term issuer rating to BBB from BB-(minus) while resolving the rating watch evolving.

Also Read:

CRISIL added that the ratings continue to be supported by the expectation of further extraordinary systemic support from key stakeholders and substantial ownership by the State Bank of India (SBI), which will play a major role in Yes Bank's credit rating in the future.

Meanwhile, Ind-Ra also said that multi-notch upward revision and the resolution of rating watch manifest considerable progress in the bank's profile as well as operating metrics after its reconstruction in March (2020).

The agency expects Yes Bank to continue to better its operating metrics and liability profile over the next few quarters as it continues to make provisions for coronavirus-related impact on its portfolio.

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