Credit rating agency Moody's Investors Service downgraded its ratings for Yes Bank Ltd citing corporate governance concerns and implications that the change in management would bring to the growth strategy of the bank.

The foreign currency, as well as local currency ratings for the lender, were lowered by the agency. Foreign currency issuer rating is now Baa3 from Ba1. The baseline credit assessment is cut from ba1 to ba2.

Moody's has also maintained a negative outlook for the bank, suggesting the probability of another downgrade in the future. "The rating action considers the resignation of various members of the bank's Board of Directors -- which, when seen in conjunction with the Reserve Bank of India's directive in September 2018 to restrict the term of the bank's MD and CEO as well as founder, Rana Kapoor, till Jan. 31, 2019 -- have raised Moody's concerns over corporate governance," it said.\

The bank is currently in a management transition mode after the RBI instructed the lender to find a CEO to replace founder Rana Kapoor by 31 January.

"In Moody's opinion, 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. Furthermore, these developments could constrain the bank's ability to raise new capital," Moody's further said.

Shares of Yes Bank ended lowered at closing today.