On Monday, rating agency Moody's upgraded its ratings on Yes Bank with a positive outlook, following the fast capital restructuring scheme mandated by the Reserve Bank of India.
"We today upgraded YES Bank long-term foreign currency issuer and foreign currency senior unsecured MTN programme ratings to Caa1 from Caa3 and (P)Caa1 from (P)Caa3 respectively," Moody's Investors Service said in a late evening statement.
Accordingly, the credit outlook has also been changed to positive from negative.
Note that 'Caa' ratings are below investment grade.
The rating upgrade came after RBI governor Shaktikanta Das in a press briefing on Monday said that the central bank will support the troubled bank with liquidity, if needed. He also assured that the money of the depositors remains safe.
Seven banks, led by the State Bank of India (SBI) have infused Rs 10,000 crore into Yes Bank via the equity route, to boost its core capital.
Other investors include Kotak Mahindra Bank, ICICI Bank and HDFC.
The capital infusion comes after RBI's reconstruction scheme was approved by the government over the weekend. The central bank had placed Yes Bank under a moratorium on 5 March, superseded its board and appointed former SBI CFO Prashant Kumar as the administrator.
Kumar will be taking over has the CEO and MD of the restructured Yes Bank and the moratorium will be lifted at 6 pm on 18 March.