ISLAMABAD: The international ratings entity, Moody’s Investors Service today downgraded the long-term deposit ratings of five leading Pakistani banks — Habib Bank Ltd, MCB Bank Limited, National Bank of Pakistan and United Bank Ltd and Allied Bank Limited — to Caa1 from B3.
It also lowered the banks’ long-term foreign currency counterparty risk ratings (CRRs) to Caa1 from B3.
On Tuesday (Oct 11), Moody’s said, “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,” Moody’s said in a statement published on its website today.
The downgrade comes days after Moody’s cut Pakistan’s local and foreign currency and senior unsecured debt ratings to Caa1 from B3.
