Pakistan Credit Rating Agency Limited (Pacra) has upgraded the long-term rating and short-term rating of the Bank of Punjab (BoP) to "AA-" and "A1+" respectively. A Pacra's spokesman disclosed this here on Saturday. According to him, these ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments. The ratings were applicable to senior unsecured creditors (depositors) of the bank.
The ratings reflect the sustained strengthening of the equity base through organic growth and a stronger capital structure than most peers in terms of the proportion of Tier I Capital in the total assets despite a substantial expansion in the balance sheet size.
The ratings also recognise the improving trend in performance with increasing contribution from core earnings.