LIMASSOL, June 09(ABC): Moody’s Investors Service on Thursday affirmed the B3 long-term deposit ratings of five Pakistani banks. As part of the same rating action, Moody’s has changed the outlook on the banks’ long-term deposit ratings to negative from stable.
The rating agency has also downgraded the long-term foreign currency Counterparty Risk Ratings of three of these five banks to B3 from B2. These ratings are now constrained by the Pakistan government’s foreign currency country ceiling, which was lowered to B3 from B2.
Today’s rating actions follow Moody’s decision to change the the government’s B3 ratings to negative from stable on June 2, 2022, and also lower the country’s local and foreign currency country ceilings to B1 and B3, from Ba3 and B2, respectively. The negative outlook on the sovereign is driven by Pakistan’s heightened external vulnerability risk and uncertainty around the sovereign’s ability to secure additional external financing to meet its needs.
