Morgan Credits and Yes Capital, are the two promoter shareholders of Yes Bank.
Rating agency CARE has downgraded Rana Kapoor-owned Morgan Credits (MCPL), that is also a promoter entity of Yes Bank.
The rating has been downgraded to BBB- from A-. "The revision in rating takes into account the fall in the stock price of the underlying shares of Yes Bank Ltd (YBL) which are held by MCPL or Promoters and/or their relatives," CARE said in its report.
"The revised rating considers the moderation in cover due to fall in the stock price of the underlying shares of YBL," it said.
The cover ratio in case of listed shares is the ratio of the market value of the pledged shares to the outstanding debt (including account interest at the end of every six months.
The Yes Bank stock, which was trading around Rs 275 in April, is now down to around Rs 65. The controversial exit of Rana Kapoor and a sharp deterioration in the financial performance of the bank have been the major reasons for the decline in the stock price.Morgan Credits and Yes Capital, the two promoter shareholders of Yes Bank, owning 3.03 percent and 3.26 percent stake, respectively, had recently written to the surveillance departments of BSE and the National Stock Exchange (NSE) alleging that short sellers are hammering the stock by spreading negative messages about the bank. Moneycontrol is in possession of a copy of the letter.The Great Diwali Discount!
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