International rating agency Moody’s on Saturday upgraded the ratings of five major Pakistani banks, citing improved economic conditions in the country.
The long-term deposit ratings of the five banks have been upgraded from Caa3 to Caa2.
The banks include Habib Bank Limited, National Bank of Pakistan, United Bank Limited, Allied Bank Limited, and MCB Bank Limited.
Moody’s also changed the outlook for all five banks from stable to positive. The decision comes after Moody’s upgraded Pakistan’s credit rating from CAA3 to CAA2 and changed the country’s outlook from stable to positive.
The international ranking agency noted that Pakistan’s improved economic conditions, including a reduction in default risk, were key factors in the upgrade. The agency also cited the country’s $7 billion deal with the International Monetary Fund (IMF) as a positive development.
In the upcoming days, the $7 billion deal is anticipated to be approved by the IMF’s executive board. It is anticipated that the agreement will boost Pakistan’s economy and lower the default risk.
