Moody’s Investors Service Tuesday downgraded Yes Bank’s ratings to non-investment grade and changed outlook to negative from stable on the back of various resignations from the Board. The resignations, when seen in conjunction with RBI’s September directive to restrict the term of the bank’s MD&CEO Rana Kapoor, till January 31, 2019, have raised concerns over corporate governance it said. “Although the bank’s reported credit fundamentals remain stable, the developments surrounding the transition in leadership as well as the governance issues are credit negative because they complicate management’s effective implementation of the bank’s long-term strategy,” it said. Furthermore, these developments could constrain the bank’s ability to raise new capital, Moody’s said. Moody’s has downgraded foreign currency issuer rating to ‘Ba1’ from ‘Baa3’, and also the bank’s baseline credit assessment (BCA) and adjusted BCA to ‘ba2’ from ‘ba1’. The rating implies that these instruments are non-investment grade, speculative. The outlook, where applicable, has been changed to negative from stable.