Mumbai: The development comes months after the private lender’s financial position worsened and its board was superseded by the Reserve Bank of India, leading to a rescue effort.
The rating agency said that the upgrade factors various positive developments on the bank’s financial profile.
Consequently, ratings on infrastructure bonds and ‘Basel II compliant lower tier II bonds’ were raised to ‘BBB’ from ‘BB+’.
Similarly, ‘Basel III compliant tier II bonds’ were upgraded to ‘BBB-‘ from ‘BB’.
“The rating upgrade factors in the sizeable capital raise of Rs 15,000 crore in July 2020, which has resulted in an improvement in the capital ratios of Yes Bank,” ICRA said in its statement.
This is the second such upgrade the private bank has seen since its follow-o n public offer in July.
On August 3, Moody’s had raised Yes Bank’s long term issuer rating by a notch to ‘B3 from Caa1’.
