Mumbai, Oct. 20 -- The Supreme Court's ruling on Yes Bank's additional tier 1 (AT1) bonds is expected to impact the lender's capital ratio and profitability, with its Common Equity Tier 1 (CET1) capital ratio projected to decline to 11.4 per cent from 13.7 per cent, according to Moody's Ratings.

The rating agency, in a release enclosed in the bank's exchange filing on Tuesday, said it had affirmed Yes Bank's long-term foreign and local currency deposit ratings at Ba1 and maintained a stable outlook despite the expected decline in its core capital.

The reinstatement of the AT1 securities is expected to weaken the bank's capital position and have a one-time negative impact on profitability. However, the Tier 1 capital ratio is expected to...