KARACHI, Sept 20: JCR-VIS rating company has reaffirmed medium to long-term rating of AAA (triple A) and short-term rating of A1+ (A one plus) to state-run National Bank of Pakistan.

The outlook on these ratings is “stable”. The ratings are based on the explicit sovereign guarantee on deposits under the Banks Nationalization Act of 1974.

JCR-VIS said in a statement that it has upgraded the stand alone ratings of NBP from single A plus/A one plus to double A minus/A one plus. The outlook on these ratings is “positive”.

“Though interest rates spread have come under pressure during the current year the bank is expected to sustain current levels of markup income through an improved yield mix of assets with higher deployment of advances, in particular consumer financing,” says JCR-VIS, making an obvious reference to the entrance of NBP in consumer lease financing.

The rating company says that the ongoing organizational restructuring currently is also expected to yield significant benefit in terms of expediting the decision-making process, improving responsiveness to the customers and strengthening internal controls.