International rating agency Moody’s announced on Saturday an upgrade in the ratings of five major Pakistani banks, reflecting improved economic conditions in the country. The long-term deposit ratings for Habib Bank Limited, National Bank of Pakistan, United Bank Limited, Allied Bank Limited, and MCB Bank Limited have been raised from Caa3 to Caa2.
Moody’s also revised the outlook for these banks from stable to positive. This follows the agency’s decision to upgrade Pakistan’s credit rating from Caa3 to Caa2, alongside a similar shift in the country’s outlook to positive.
Moody’s attributed the upgrades to Pakistan’s improved economic conditions, particularly a reduction in default risk. The agency highlighted the country’s $7 billion deal with the International Monetary Fund (IMF) as a key factor contributing to the positive outlook. The deal, expected to be approved by the IMF’s executive board soon, is anticipated to bolster Pakistan’s economy and further mitigate default risks.