Moody’s Investors Service (“Moody’s”) has downgraded the long-term deposit ratings to Caa1 from B3 of five Pakistani banks: Allied Bank Limited (ABL), Habib Bank Ltd. (HBL), MCB Bank Limited (MCB), National Bank of Pakistan (NBP) and United Bank Ltd. (UBL).
The rating agency has also downgraded the five banks’ long-term foreign currency Counterparty Risk Ratings (CRRs) to Caa1 from B3.
As part of the same rating action, Moody’s lowered the Baseline Credit Assessments (BCAs) of ABL, MCB, and UBL to caa1 from B3, and as a result, also downgraded their local-currency long-term CRRs to B3 from B2 and their long-term Counterparty Risk Assessments to B3(cr) from B2(cr). The BCAs of NBP and HBL were affirmed at caa1. The outlook on all banks’ deposit ratings remains negative.
The rating actions follow Moody’s decision to downgrade the Government of Pakistan’s issuer and senior unsecured debt ratings to Caa1 from B3 and maintain a negative outlook.
The rating actions reflect:
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