Our Special CorrespondentMumbai: Fitch Ratings on Tuesday downgraded the viability rating of Punjab National Bank (PNB) to 'bb-' from 'bb'. Viability ratings (VRs) measure the intrinsic creditworthiness of a financial institution or a bank. While Fitch has maintained its rating watch negative (RWN) on PNB, it said that this reflects its belief that potential losses will largely consume the $1.6 billion of capital injected in the second half of 2017-18, putting pressure on the bank's capital buffers over the medium term. "PNB's ability to sustain, if not improve, its buffers through sources such as retained earnings, fresh equity raising and stake sales is important for its viability rating. We will resolve the RWN once we have greater clarity around the status of PNB's capital buffers and earnings trend, but this may take six months or longer,'' it said.

Source: The Telegraph April 10, 2018 19:07 UTC