Moody Downgrades PNB Ratings over Impacts of Nirav Modi Fraud
International Rating Agency Moody's, Investor Service has downgraded state-owned Punjab National Bank's rating citing the impacts of recent fraud on bank's capital and weak internal records.
While PNB's rating has been modified to Ba1/NP from Baa3/P-3, its outlook has remained stable. Its baseline credit assessment (BCA) to has been downgraded by the credit agency.
The Moody's Report that released on Monday said,
The downgrade of the bank’s BCA and ratings reflects the negative impact of the discovery of a number of fraudulent transactions on the bank’s standalone profile, particularly its capital position.
Moody's report has forecasted that the state-run bank will need an external capital of about Rs12,000-13,000 crore in FY19 to meet the minimum Basel III CET1 ratio of ...