Moody's Affirms Yes Bank's Ba1 Deposit Rating With Stable Outlook After AT1 Ruling
- Credit rating
- Banking
Yes Bank Limited has told the exchanges that Moody's Ratings affirmed on 20 Oct 2026 its long-term foreign and local currency bank deposit ratings at Ba1 and its long-term foreign currency issuer rating at Ba1, with the baseline credit assessment at ba2 and its medium-term note programme at (P)Ba1. The short-term ratings are Not Prime, and the outlook is stable.
Moody's says the affirmation reflects its expectation that the bank will keep its overall credit profile despite a lower Common Equity Tier 1 ratio after the Supreme Court ruling of 15 Oct 2026 that invalidated the 2020 write-down of its additional tier 1 bonds. The ruling will reinstate the bonds, and management estimates the CET1 ratio will fall to 11.4% from 13.7% on a pro-forma basis at Sep 2026, while the Tier 1 ratio stays the same because the bonds count towards it. Moody's notes a one-time hit to profitability, and expects the bank to rebuild its capital buffers by raising new equity.
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