Fitch cuts Punjab National Bank viability

Fitch Ratings said it downgraded Punjab National Bank’s (BBB-/stable) viability rating to bb- from bb and maintained the rating on rating watch negative.

The bank’s other ratings are unaffected.

Fitch said the downgrade follows its assessment of how losses resulting from fraudulent transactions reported in February 2018 will affect the bank's financials, including its earnings and core capitalization.

The downgrade also reflects the bank's risk controls, which we think are weaker than what the agency previously believed, because the fraud was undetected for several years and acquired a large scale of $2.2 billion.

That said, the bank plans to strengthen its risk controls, Fitch noted.

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