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

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.