Moody made this change rating neighbor country banks!!?
Moody's made this change in the ratings of the neighboring country's banks, know why the pakistan government was stunned?
Moody's: moody's said in a statement that in this rating action, moody's has reduced the Baseline Credit Assessment (BCA) of ABL, MCB, and UBL from B3 to CAA1. Simultaneously, the local-currency long-term CRR has also been downgraded from B2 to B3.Moody's Investors service has downgraded the long-term deposit ratings of five Pakistani banks from B3 to CAA1. The rating agency has also decided to downgrade the long-term foreign exchange counterparty risk rating (CRR) of five banks from B3 to CAA1.
In this rating action, moody's has downgraded the Baseline Credit Assessment (BCA) of ABL, MCB, and UBL from B3 to CAA1, moody's said in a statement. Simultaneously, the local-currency long-term CRR has also been downgraded from B2 to B3. At the same time, it has also been said by moody's that the deposit rating of all banks remains negative.
According to economic experts, the downgrading of Pakistan's banks by moody's reflects the government's low ability to strengthen banks, affecting the condition of those banks whose ratings benefit from government support.
Pakistan has rejected moody's decision to downgrade its banks. The Shahbaz Sharif government said it was taken unilaterally and due to information gaps and contradictions did not present a true picture. Pakistan's Finance minister Ishaq Dar said he would give a befitting reply in a meeting with moody's officials if the agency does not change the ratings of banks.
According to Pakistani media don, he has said that moody's officials will have to meet me. He has said that if the agency does not change these ratings, he will be given a proper reply in the meeting to be held next week.