Karachi: Moody's Investors Service downgraded long-term deposit ratings of five Pakistani banks to Caa3 from Caa1. Banks are Allied Bank Limited (ABL), Habib Bank Limited (HBL), MCB Bank Limited (MCB), National Bank of Pakistan (NBP) and United Bank Limited (UBL).

Moreover, Moody's also downgraded five banks' long-term foreign currency Counterparty Risk Ratings (CRRs) to Caa3 from Caa1. As part of same rating action, Moody's lowered five banks' Baseline Credit Assessments (BCAs) to Caa3 from Caa1 and as result also downgraded their local currency long-term CRRs to Caa2 from B3 and their long-term Counterparty Risk Assessments to Caa2(cr) from B3(cr).

However, outlook on all banks' long-term bank deposit ratings has been changed to stable from negative said rating agency in statement.

Moody's latest rating action follows its decision to downgrade Government of Pakistan's issuer and senior unsecured debt ratings to Caa3 from Caa1 earlier this week, to reflect Moody's assessment that Pakistan's increasingly fragile liquidity and external position significantly raises default risks.

Published in The Daily National Courier, March, 04 2023

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