Pakistan floods put banks in jeopardy

ISLAMABAD, Pakistan, Sept. 3 (UPI) -- Credit rating agency Moody's Investor Service said floods in Pakistan could undermine the nation's banks.

Although the floods are centered on rural areas, Moody's warned that many loans would fall into arrears as thousands of borrowers have their incomes disrupted, The Financial Times reported Friday.

The floods, which began with the monsoon season in July, have covered about one-fifth of Pakistan and claimed an estimated 1,500 lives, CNN reported.

There are fears that a wave of hunger and disease could claim hundreds more lives.