Global rating agency Moody’s has downgraded the rating for public sector lender Punjab National Bank to “Ba1’’ from “Baa3’’ due to the negative effect of fraudulent transactions (Nirav Modi sam) on capital position and asset quality.
At the same time, Moody's has downgraded the bank's baseline credit assessment (BCA) and Adjusted BCA to b1 from ba3.
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 said in a statement.
The rating downgrade also reflects the weak internal controls
