Yes Bank stock jumps after Moody's upgrades Ratings to B3
Moody’s Investors Service has upgraded its ratings for Yes Bank’s long term foreign-currency issuer ratings to B3 from Caa1. And the outlook for Yes Bank has been changed to stable from positive. The latest upgrade from Moody’s comes as Yes Bank has recently raised Rs 15,000 crore with follow-on public offer.
Yes Bank stock declined to Rs 12 from Rs 28 when the FPO pricing was announced by the bank. The private sector lender has avoided failure in March this year and now its financial condition is stable. However, the next major check on Yes Bank’s stability will come once the loan and emi-moratorium ends this month. Yes Bank has indicated that the bank could see positive recovery trends and majority of consumers who availed moratorium, were regularly paying their dues.
Yes Bank stock was trading nearly 3 percent higher in today’s session after Moody’s upgrade for its ratings. Long and medium term investors should stay invested in Yes Bank as there is a high chance for the bank to recover to its pre-FPO pricing. The stock is highly volatile and new investment in Yes Bank should only be considered once the financial condition of the private lender is clear.