Unfavorable outcome of the legacy pension case to threaten NBP’s rating: VIS

News Image

By MG News | July 03, 2019 at 10:29 AM GMT+05:00

0:00

July 3, 2019: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of National Bank of Pakistan (NBP) at ‘AAA/A-1+’. Outlook on the assigned ratings is ‘Stable’.

The long term rating of ‘AAA’ signifies highest credit quality; risk factors are negligible being only slightly more than for risk-free Government of Pakistan’s debt, whereas the short-term rating of ‘A-1+’ signifies highest certainty of timely payment; short-term liquidity, including internal operating factors and access to alternative sources of funds, is outstanding and safety is just below risk free Government of Pakistan’s short-term obligations.

Assigned ratings are driven by the bank’s systemic importance, ownership structure with majority shares (75.6%) held by the Government of Pakistan (GoP), and NBP’s role in handling treasury transactions for the GoP as an agent to the State Bank of Pakistan.

The rating also reflects the bank’s positioning as the largest public sector bank in the country having market share of 15.0% (2017: 13.2%) in domestic deposits and 12.4% share of gross advances.

Current ratings are also supported by the bank’s improved operating profitability and adequate liquidity profile. Capitalization indicators of the bank remain healthy; the same may come under pressure in case of unfavorable outcome of the litigation related to legacy pension case, and will require further strengthening to remain commensurate with the assigned ratings benchmarks.

Copyright Mettis Link News

Related News

Name Price/Vol %Chg/NChg
KSE100 128,199.43
336.91M
2.05%
2572.11
ALLSHR 79,787.62
1,023.63M
1.53%
1202.91
KSE30 39,105.00
121.90M
2.49%
951.21
KMI30 186,915.61
131.16M
1.10%
2029.11
KMIALLSHR 54,201.88
553.60M
0.81%
438.07
BKTi 33,476.68
51.49M
4.87%
1555.00
OGTi 27,962.58
9.77M
0.68%
188.60
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 105,945.00 106,200.00
105,440.00
195.00
0.18%
BRENT CRUDE 67.23 67.29
67.05
0.12
0.18%
RICHARDS BAY COAL MONTHLY 97.50 97.50
97.50
0.70
0.72%
ROTTERDAM COAL MONTHLY 103.80 103.80
103.80
-3.45
-3.22%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 65.53 65.65
65.34
0.08
0.12%
SUGAR #11 WORLD 15.70 16.21
15.55
-0.50
-3.09%

Chart of the Day


Latest News
July 02, 2025 at 06:01 AM GMT+05:00

MG Morning Breeze: Updates to Skim before Market


July 01, 2025 at 10:04 PM GMT+05:00

Pakistan’s trade deficit improves by over 9% in June


July 01, 2025 at 05:24 PM GMT+05:00

Gold price in Pakistan rises Rs6,600 per tola



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg