PACRA upgrades Soneri Bank long-term rating to AA

Soneri Bank rating raised to AA by PACRA in latest review

The Pakistan Credit Rating Agency (PACRA) has upgraded Soneri Bank’s Long-Term Entity Rating from AA- to AA, while maintaining its Short-Term Rating at A1+, the highest possible level. The revision reflects improved financial stability and continued operational performance of the bank, according to the rating update issued by PACRA.

PACRA stated that the upgrade is based on a stronger and more stable financial position of the bank. It highlighted improvements in the bank’s overall structure, including its funding base and earnings performance over time.

The rating agency noted that Soneri Bank has shown a structurally strengthened liability franchise, along with sustained momentum in earnings. It also pointed to continued progress in the bank’s trade finance operations as part of the positive assessment.

According to PACRA, the bank’s deposit base has improved consistently over recent years. The Current and Savings Account (CASA) ratio has strengthened, showing better stability in low-cost deposits compared to previous periods.

The report further stated that current deposits have grown at a faster pace than the overall deposit base. This growth has been especially visible in newly opened branches, which have contributed to expanding the bank’s customer base.

PACRA described the bank’s funding structure as stable and increasingly reliable. It noted that the deposit mix is not driven by short-term rate sensitivity, but is instead supported by long-term customer relationships.

The agency added that this low-cost funding base is relationship-anchored, which has helped maintain stability in spreads over time. The spread performance has also remained higher than historical levels, reflecting improved financial efficiency.

The upgrade signals PACRA’s confidence in Soneri Bank’s ongoing financial discipline and its ability to maintain growth in a stable manner. The reaffirmation of the A1+ short-term rating also reflects the bank’s strong capacity to meet its short-term obligations without difficulty.

Market observers often view such rating upgrades as an indicator of improved financial health, particularly in terms of liquidity management, deposit stability, and operational strength.

Soneri Bank’s latest rating revision places it in a stronger position within the local banking sector, reflecting steady progress in its core financial indicators and overall business structure.

(Source:brecorder)