Karachi July 12 2023: Rating of outstanding Tier -2 TFC of Summit Bank has been harmonized at ‘B’ by VIS Credit Rating indicating payments are not being made as per original schedule and future performance is less likely.
"The rating of issued Tier-2 Term Finance Certificate of Summit Bank Limited has been harmonized at 'B' previously from 'D' (Default)" says Banks in its statement.
VIS Credit Rating Company Limited has issued a new Rating Scale for hybrid Tier-1 and Tier-2 capital instruments issued by Banks under Basel III guidelines as implemented by SBP. The rating scale captures the peculiar characteristics of the hybrid instruments in relation to their conversion/write down features. Accordingly, rating of outstanding Tier -2 TFC of Summit Bank has been harmonized at ‘B’ (Single B). Instrument rating of ‘B’ denotes that payments are not being made as per original schedule. Future performance is less likely. Outlook on the instrument rating has been placed on ‘Rating Watch-Negative’.