Press Release
VIS Finalizes Basel III compliant Tier-2 Instrument Rating of United Bank Limited (formerly Silkbank Limted TFC-1)
Karachi, June 19, 2025: VIS Credit Rating Company Limited (VIS) has finalized the rating of ‘AAA’ (Triple A) of Basel III compliant Tier-II TFC-6 of United Bank Limited (‘UBL’ or ‘the Bank’) (formerly Silkbank Limted TFC-1). The outlook on assigned rating is ‘Stable.’ Previous rating action was announced on March 19, 2025.
The instrument is a privately placed, unsecured, and subordinated Tier-II Term Finance Certificate (TFC) of PKR 2.0 billion, issued in August 2017 and maturing in August 2025. The instrument was previously rated ‘BBB+’ (Triple B Plus) based on the condensed interim financial statements of the former Silkbank Limited as of June 30, 2020. On June 16, 2023, the rating was harmonized under VIS’s revised methodology and adjusted to ‘B’ (Single B) with a ‘Rating Watch – Negative’ status. Subsequently, on March 19, 2025, VIS suspended the instrument rating following the amalgamation of Silkbank Limited with and into UBL and pending information required for review of the rating.
The Bank has confirmed that all scheduled payments on the TFC have been made to date and the final payment on the TFC is due in August 2025, which UBL is expected to make as scheduled.
To refer the rating history, please visit the link: https://vis.com.pk/Home/History?contractCode=00069503
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Financial Institutions
https://docs.vis.com.pk/Methodologies%202024/Financial-Institution-v2.pdf
Rating the Issue
https://docs.vis.com.pk/docs/Rating-the-Issue-Aug-2023.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf