Moody's upgraded the BCA and Adjusted BCA of HBL to caa1 from caa2, as well as the bank's long-term deposit ratings to Caa1 from Caa2. HBL's BCA captures the improving operating conditions, the bank's good liquidity buffers, strong deposit-funded profile and solid asset quality position, reflected by its 5.3% reported NPLs as of March 2025; but also the high asset risks, given the bank's high exposure to government securities that links its credit profile to that of the government, as well as its modest adjusted capital buffers, with tangible common equity representing 5.7% of adjusted risk weighted assets as of March 2025. The upgrade of the long-term deposit ratings to Caa1 reflects the BCA upgrade and our assessment of a very high probability of government support, which results in no uplift as the bank's caa1 BCA is at the same level as Pakistan's long-term issuer rating of Caa1.