Pakistan’s foreign currency following the revision government bond rating outlook

ISLAMABAD: Pakistan’s foreign currency following the revision government bond rating outlook to fix from negative, the Moody’s Investors Service declared the B3 long-term local-currency deposit ratings of five Pakistani banks and changed the outlook on these ratings to fix from negative.

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Rating revised the five banks are Allied Bank Limited, Habib Bank Ltd, MCB Bank Limited, National Bank of Pakistan and United Bank Ltd. The rating actions follow Moody’s decision on 14 July to assert the Caa1 rating for the Government of Pakistan and change the mindset on the sovereign rating to stable from negative.

The rating actions of bank grasp into account a compensation of the government’s risk profile and its capability to support the banks, and the high underlying inter-linkages among the banks’ standalone credit risk profiles and that of the sovereign, owing to their high lending concentrations to the regime and to government associated organizations.

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