On Tuesday, the Moody’s Investors Service confirmed the B3 deposit rating of five Pakistani banks for long-term local currency and Caa1.
The banks include Allied Bank Limited (ABL), MCB Bank Limited (MCB), National Bank of Pakistan (NBP) and United Bank Limited (UBL). They also provide a variety of financial institutions.
According to a report published by Moody’s, the outlook on all Pakistani banks’ long-term local currency deposit ratings has changed to stable from ratings under review.
“Moody’s decision to confirm the banks’ ratings follows Moody’s decision to confirm Pakistan’s B3 sovereign ratings, which signals reduced pressure on Pakistan’s credit profile, indirectly supporting bank ratings, given their high exposures to government credit risk,” read the report.
The credit rating agency further said that its decision to confirm Pakistan’s B3 government bond ratings with a stable outlook, also results in the stabilisation of its view of the capacity of the Pakistani government to support the country’s banks in case of need.