Yes Bank tanks by 11 pc after CARE downgrades NCDs of lender's promoter MCPL
Mumbai (Maharashtra) [India], Sep 19 (ANI): Shares of Yes Bank cracked by over 11 per cent on Thursday afternoon after CARE Ratings downgraded ratings of non-convertible debentures of Morgan Credits Pvt Ltd (MCPL), one of the private lender's promoter entities.
ANI
Sep 19, 2019 13:39 IST
Mumbai (Maharashtra) [India], Sep 19 (ANI): Shares of Yes Bank cracked by over 11 per cent on Thursday afternoon after CARE Ratings downgraded ratings of non-convertible debentures of Morgan Credits Pvt Ltd (MCPL), one of the private lender's promoter entities.
At 1:30 pm, the stock was trading at Rs 57. On August 22, it had hit a low of Rs 53 in intra-day trade.
MCPL, which holds a little over three per cent stake in Yes Bank, was downgraded to BBB-minus from A-minus due to fall in stock price of underlying shares of the bank held by it.
"The revised rating considers the moderation in cover due to fall in the stock price of the underlying shares of Yes Bank Ltd," said CARE Ratings in a statement.
"The rating is based on the internal credit enhancement in the form of pledge of unencumbered listed shares of Yes Bank held by MCPL or MCPL's promoters and their relatives in favour of the debenture trustee."
On March 31, MCPL with its associate entities and individuals held 10.62 per cent stake in Yes Bank.
Two promoter shareholders of YES Bank -- MCPL and Yes Capital -- had recently written to the surveillance departments of BSE and the National Stock Exchange (NSE) alleging that short sellers were hammering the stock by spreading negative messages about the bank. (ANI)
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