Yes Bank shares drop nearly 8% on ratings downgrade by Moody's Investors Service
Yes Bank shares plunged 7.88 percent to Rs 168.70 on BSE. On NSE, shares of the company dropped 7.69 percent to Rs 168.60
New Delhi: Shares of Yes Bank slumped nearly 8 percent on Wednesday after Moody's Investors Service downgraded the company's ratings to non-investment grade and changed the outlook to negative from stable.
The scrip plunged 7.88 percent to Rs 168.70 on BSE. On NSE, shares of the company dropped 7.69 percent to Rs 168.60.
Moody's Investors Service on Tuesday downgraded Yes Bank's ratings to non-investment grade and changed the outlook to negative from stable on the back of various resignations from the board.
The resignations, when seen in conjunction with RBI's September directive to restrict the term of the bank's MD and CEO Rana Kapoor, till 31 January, 2019, have raised concerns over corporate governance, it said.
"Although the bank's reported credit fundamentals remain stable, the developments surrounding the transition in leadership as well as the governance issues are credit negative because they complicate management's effective implementation of the bank's long-term strategy," it said.
Furthermore, these developments could constrain the bank's ability to raise new capital, Moody's said.