Mumbai, June 16 -- The agency has also upgraded the bank's baseline credit assessment (BCA) to 'ba3' from 'b1'. It has changed the rating outlooks to 'stable' from 'positive'.

Moody's Ratings said that the upgrade of Yes Bank's ratings and BCA is driven by a gradual improvement in the bank's credit profile including its capital and loan loss reserves which will provide sufficient buffers against the bank's unseasoned asset risks and improving yet modest profitability and funding.

Yes Bank's Ba2 deposit ratings are one notch above its ba3 BCA based on our expectation of a moderate likelihood of support from the Government of India (Baa3 stable) in times of need.

The bank's gross non-performing loan (NPL) ratio declined to 1.6% as of Mar...