PACRA has upgraded long-term rating of Union Bank Limited to “AA+” (Double A plus), while maintaining its short-term rating at “A1+” (A one plus). The bank’s three listed, subordinated TFCs are assigned ratings of “AA” (Double A). These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments. The rating action follows the acquisition of majority shareholding (95%) in Union Bank by Standard Chartered Bank (Pakistan) Limited (SCBP). SCBP is a wholly owned subsidiary of Standard Chartered PLC, the parent of Standard Chartered Bank (SCB), which carries international long-term rating of “A+” by Standard & Poor’s.

SC is in the process of merging SCB, Pakistan Branches and Union Bank with and into SCBP. The combined entity would be Pakistan’s sixth largest bank, in terms of total assets, with a fuller range of products and services, a stronger operating platform, a wider distribution network and an improved risk profile.