JCR-VIS Credit Rating Company Limited has reaffirmed the credit ratings of Zarai Taraqiati Bank Limited (ZTBL) at "AAA/A-1+" (Triple A/A-one plus with 'Stable' outlook. The AAA/A-1+ ratings of ZTBL are based on the federal government guarantee for timely repayment of credit lines obtained from the State Bank of Pakistan (SBP).
The guarantee covers the principle amount of the lines together with profit payable in arrears. The safety of deposits has also been guaranteed by the Government of Pakistan under the Bank's (Nationalisation) Act 1947.
The Asian Development Bank had extended funding to the bank to provide for loan losses. Funds had also been allocated to restructure the organisation: however, progress in this regard has been slow.-PR