Another downgrade for yesbank by Moddy's

In more troubles for the already struggling YESBANK global rating agency Moody's reiterated its decision to keep its ratings "under review for downgrade" for the second time in under two months. It cited the worsening asset quality and higher exposure to shadow banks.

It has also extended its review to downgrading its long-term foreign and local currency bank deposit ratings of ‘Ba1’, foreign-currency senior unsecured MTN programme rating of ‘Ba1’, and baseline credit assessment of ‘Ba2’.

In a note on Monday, the agency also said the bank's counter-party risk assessment of ‘Baa3’ and domestic and foreign currency counter-party risk rating of ‘Baa3’ also remain under review for downgrades.

"Any inability of the bank to raise equity capital over the next one-two quarters will add significant pressure to its ratings. The review will also focus on developments in the watchlist portfolio, including the potential for resolution or slippage of some key exposures," Moody's warned.