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PNB fraud impact: Fitch, Moody's place lender's rating under watch

Moody's has placed the bank's Baseline Credit Assessment (BCA) and adjusted BCA of ba3 and the Counterparty Risk Assessment (CRA) of Baa3(cr)/P-3(cr) under review for a downgrade

Punjab National Bank, pnb
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After the ~114 bn fraud in PNB, jewellers fear lenders will seek higher collateral and most firms who take the debt route to grow are exhausted in terms of providing security

Nikhat Hetavkar Mumbai
Following the revelation of the Rs 114-billion fraud at Punjab National Bank (PNB), global rating agencies Fitch and Moody’s have placed the lender under watch for a possible downgrade.

Moody's has placed the bank's Baseline Credit Assessment (BCA) and adjusted BCA of ba3 and the Counterparty Risk Assessment (CRA) of Baa3(cr)/P-3(cr) under review for a downgrade. The agency cited “the risk of weakening of the bank's standalone credit profile, as a result of the discovery of a number of fraudulent transactions” as the primary driver of the rating action.

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