PACRA ASSIGNS RATINGS TO

HOUSE BUILDING FINANCE CORPORATION (HBFC)

 

Lahore: February 28, 2002

The Pakistan Credit Rating Agency (PACRA) has assigned a "BBB" (triple B) long-term and an "A3" (single A three) short-term entity rating to HBFC. The ratings denote currently low expectation of credit risk emanating from the corporation's adequate capacity for timely payment of financial commitments.

While assigning the ratings, PACRA has recognized the Corporation's importance in the economy, its strong liquidity position, exclusive funding base, but at the same time inconsistent performance in the core financing operations, substantial proportion of rentals in arrears, weak recovery efforts and the absence of an effective management team. Given the Corporation's status of a wholly-owned state institution and its importance to the local economy, in PACRA's assessment, support would be forthcoming from the government should it prove necessary.