Z-Investors Services has announced an upgrade in the ratings of five leading Pakistani banks. The prestigious global rating agency Moody’s has enhanced its long-term deposit ratings from “CAA3” to “CAA2.”
The banks benefiting from this upgrade include Allied Bank Limited, Habib Bank Limited, Muslim Commercial Bank, National Bank of Pakistan, and United Bank Limited. In addition to the upgrade, Moody’s has revised the outlook for all five banks from stable to positive, signalling confidence in their future performance.
Furthermore, Moody’s has raised the baseline credit assessments for four banks to “CAA2.” This decision comes shortly after Moody’s also uplifted Pakistan’s overall credit rating, reflecting a decreased risk of default.
Read: Moody’s Upgrades Pakistan’s Debt Ratings to Caa2
The upgrade for local and foreign currency debt illustrates an improving fiscal outlook for the country, bolstered by strengthened banking performances.