Press Release

VIS Harmonizes Rating of Tier-2 Instrument of Silk Bank Limited

Karachi, June 16, 2023: 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 Silk 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. The instrument rating has been placed on ‘Rating Watch-Negative’.

The rating action incorporates updated ‘Financial Institution’ methodology which can be found on our website or on the following link Last announced entity rating of ‘A-/A/2’ (Single A Minus/A-Two) as of October 12, 2020 remains on ‘Rating Watch-Negative’. Once a definite capital plan along with latest financials is made available, VIS will review the ratings.

For further information on this rating announcement, please contact the undersigned (Ext: 207) at (021) 35311861-64 or email at

Sara Ahmed

Applicable Rating Criteria: Financial Institution Methodology (May 2023)

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