NEW DELHI: Shares of Yes Bank on Tuesday gained nearly 4 per cent after Moody's Investors Service said it has upgraded the company's long-term foreign currency issuer rating by a notch.
The stock rose by 3.58 per cent to Rs 12.41 on the BSE. On the NSE, it gained 3.33 per cent to Rs 12.40.
Moody's Investors Service on Monday said it has upgraded Yes Bank's long-term foreign currency issuer rating by a notch to 'B3' from 'Caa1' after a Rs 15,000-crore capital raising.
Despite the upgrade, Yes Bank still remains under non-investment grade. Obligations rated 'B' are considered speculative and are subject to high credit risk, while those rated 'Caa' are judged to be speculative of poor standing and are subject to very high credit risk.
"Moody's has upgraded the bank's long-term foreign and local currency bank deposit ratings to B3 from Caa1, and its foreign currency senior unsecured MTN (medium-term note) programme rating to (P)B3 from (P)Caa1," it said.
Giving rationale for rating action, the rating agency said Yes Bank's successful equity capital raise of Rs 15,000 crore (about USD 2 billion) has bolstered its solvency and is the main driver of the ratings upgrade.
The successful equity raising showcases Yes Bank's regained access to external market funds, which is a result of its improving financial strength and will support depositor confidence, it said.