Credit Rating Upgrade
Yes Bank Ratings Upgraded by Moody’s to Ba1; Outlook Remains Stable
NSE
yesbank
BSE
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Moody’s Investors Service upgraded Yes Bank’s long-term foreign currency issuer rating and deposit ratings to Ba1 from Ba2 while maintaining a stable outlook. The upgrade reflects improvement in the bank’s funding profile, asset quality, and capitalization metrics.
PRICE-SENSITIVE TRIGGER
Event: Moody’s rating upgrade for Yes Bank
Type: Credit Rating Upgrade
Impact: Positive
Immediate Effect: The rating upgrade enhances Yes Bank’s credit profile, improves market perception, and may support lower borrowing costs and stronger access to international funding markets.
Key Metrics:
- Long-Term Foreign Currency Issuer Rating: Upgraded to Ba1 from Ba2
- Long-Term Local & Foreign Currency Deposit Rating: Upgraded to Ba1 from Ba2
- Baseline Credit Assessment (BCA): Upgraded to ba2 from ba3
- Senior Unsecured Medium-Term Note Program Rating: Upgraded to (P)Ba1 from (P)Ba2
- CET1 Ratio (March 2026): 13.8%
- Gross NPA Ratio (March 2026): 1.3%
- Retail and CASA Deposits Share: Increased to 53% of total deposits and borrowings
- Net Income to Tangible Assets (FY26): Improved to 0.7%
Highlight:
- Highlight: Long-Term Deposit Rating Upgrade
- Value: Ba1 from Ba2
What Happened ?
Yes Bank informed stock exchanges that Moody’s Investors Service upgraded multiple long-term credit ratings and assessments of the bank.
The rating agency upgraded the bank’s long-term foreign currency issuer rating and long-term deposit ratings to Ba1 from Ba2 while maintaining the outlook at stable.
Moody’s cited improvements in funding quality, asset quality, capitalization, governance standards, and recovery from stressed assets as key drivers for the upgrade.
The agency also upgraded the bank’s Baseline Credit Assessment (BCA) to ba2 from ba3 and improved ratings for the bank’s foreign currency medium-term note program.
key highlights
Moody’s Rating Upgrade and Rationale:
- Moody’s upgraded Yes Bank’s long-term foreign currency issuer rating to Ba1 from Ba2.
- Long-term local and foreign currency deposit ratings were also upgraded to Ba1.
- Baseline Credit Assessment (BCA) improved from ba3 to ba2.
- Senior unsecured foreign currency medium-term note program rating was upgraded to (P)Ba1.
- Outlook on all upgraded ratings remains stable.
- Moody’s highlighted improvement in funding quality and capital position.
- Gross NPA ratio declined significantly to 1.3% by March 2026.
- CET1 ratio improved to 13.8% as of March 2026.
- Share of granular CASA and retail deposits rose to 53% from 41% in March 2021.
- Moody’s noted improving governance standards and risk management practices.
- SMBC’s strategic investment and stake increase to 24.9% strengthened investor confidence.
- Moody’s expects provisioning costs to normalize gradually in FY26.
- Asset quality risks still remain due to exposure to SME and retail loan segments.
- Moody’s maintained a stable outlook, reflecting balanced risk and recovery expectations.
Note:
- The disclosure was made under Regulation 30 of SEBI LODR Regulations based on Moody’s official ratings announcement dated May 11, 2026.
Risk Analysis
Key Risks
- Asset quality remains vulnerable to stress in SME and retail loan portfolios.
- Funding profile is still weaker compared to highly rated Indian peers.
- Rising interest rates or macroeconomic stress could impact profitability.
- Moody’s indicated ratings may be downgraded if capital adequacy weakens materially.
- A deterioration in India’s sovereign rating may negatively affect Yes Bank’s ratings.
- Higher provisioning requirements could pressure earnings in future quarters.
Worst Case Scenario
- If asset quality deteriorates sharply or capital metrics weaken below Moody’s thresholds, the bank could face rating downgrades and increased funding costs.
Risk Level: Medium
Company Commentary
- Yes Bank informed exchanges that Moody’s upgraded multiple long-term ratings and assessments.
- The bank confirmed the outlook on the upgraded ratings remains stable.
- Management highlighted the publication of the Moody’s ratings release on the bank’s website.
- The bank disclosed detailed instrument-wise rating actions under SEBI LODR compliance.
Official Exchange Filing: Yes Bank Limited