Global rating agency Moody's on Thursday assigned a bank financial strength rating of D+ to private sector lender - Yes Bank , with a stable outlook.
The rating reflects the bank's financial position and relatively small, but rapidly growing franchise as India's fourth-largest new generation private-sector bank. The rating also takes into account short track-record of strong financial performance and its very high level of loan growth, the agency said in a note.
Moody's also assessed Yes Bank's deposits with the rating rank of Baa3/P-3. The baseline credit assessment was ranked as ba1.
The rationale behind the ratings as stated in the Moody's report:
- A relatively small, but rapidly, expanding mainly corporate franchise
- Relatively solid capitalization, although the level is being depleted by growth
- Strong asset quality, although with high loan growth, limited track record and favorable economic cycle
- Moderate funding and liquidity risks, despite some funding vulnerabilities related to its dependence on corporate deposits
- A widely diversified loan book in terms of industry concentration
- Business profile geared towards large corporate segment at 67% of loans, mid-sized corporate segment of 18% and retail loans of 15%.
However, any deterioration in asset quality coupled with reduction in loss aborbing buffer can pose threat to rating downgrade. Moreover, decline in tier-I capital level below 8% will also make a case for rating cut.
Yes Bank shares zoomed more than 82% in the last one year as against a rise of 57% of Bankex, the broader index for banking stocks. At 13:35 hrs on Thursday, those are trading at Rs 466, down nearly 1% while 30-share sensex was down by 0.40%.
Anda sedang membaca artikel tentang
Stable outlook for Yes Bank, says Moody's Rating
Dengan url
https://kesehatanda.blogspot.com/2012/12/stable-outlook-for-yes-bank-says-moodys.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Stable outlook for Yes Bank, says Moody's Rating
namun jangan lupa untuk meletakkan link
Stable outlook for Yes Bank, says Moody's Rating
sebagai sumbernya
0 komentar:
Posting Komentar