PPI Original Text (PPI-OT) – Moody’s downgraded rating of Pakistani Banks to B3 – Alfalah Securities Limited

Karachi, June 01, 2012 (PPI-OT): Moody’s Investor Service has lowered the standalone assessments of 13 banks in Jordan, Lebanon, Pakistan and Ukraine.

According to Alfalah Securities Limited, resultantly, the ratings of 5 big Pakistani banks namely ABL, HBL, NBP, MCB and UBL have been downgraded by two notches to B3 from B1. Moody’s has lowered standalone credit assessments of these banks bringing them in line with Pakistan’s B3 sovereign debt rating after considering the standalone credit profiles and the linkages between the bank’s credit profile and sovereign credit risk. The revised ratings reflect the banks’ high exposure to Pakistan government debt and geographical concentration in Pakistan’s weak and volatile operating environment. The decline in ratings would be negative for the five big banks due to higher risk concerns.

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