YES Bank tanks 8% after CARE downgrades NCDs of promoter Morgan Credits


YES Bank tanked close to 9 percent intraday to Rs 58.40 on September 19 and was among the top Nifty loser after CARE downgraded NCDs of the bank’s promoter, MCPL.

Morgan Credits (MCPL) non-convertible debentures were downgraded to ‘BBB-’ from ‘A-’. MCPL is one of the promoter entities of YES Bank, holding a 3.03% stake in the lender as on March 31, 2019.

The rating revision takes into account the fall in the stock price of the underlying shares of YES Bank which are held by MCPL or promoters and their relatives. “The revised rating considers the moderation in cover due to fall in the stock price of the underlying shares of YBL,” CARE Ratings said.

The cover ratio in case of listed shares is the ratio of the market value of the pledged shares to the outstanding debt (including account interest at the end of every six months).

Morgan Credits and Yes Capital, the two promoter shareholders of YES Bank, owning 3.03 percent and 3.26 percent stake, respectively, had recently written to the surveillance departments of BSE and the NSE alleging that short-sellers were hammering the stock by spreading negative messages about the bank.

The stock price has plunged more than 81 percent in the last one year. At 1237 hours, YES Bank was quoting at Rs 58.40, down Rs 5.70, or 8.89 percent. It has touched an intraday low of Rs 58.15.

news Source:- moneycontrol

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