The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (23-January-2007)
    PACRA Assigns the Asset Manager Rating to
MCB Asset Management Company Limited (MCB-AMC)
 

 
Analyst
Moin Khalid
(+92-42-586 9504)
moin@pacra.com

 

 

 













 

 

 

 

 

 

 

Disclaimer
This press release is transmitted to you for this sole purpose of dissemination through your newspaper/magazine/agency. The press release may be used by you in full or in part without changing the meaning or context thereof but with due credit to PACRA. However, PACRA has the sole right of distribution of its press releases for consideration or otherwise through any media.

  

The Pakistan Credit Rating Agency (PACRA) has assigned an asset manager rating of “AM3” to MCB Asset Management Company Limited (MCB AMC). The rating has been assigned a ‘Positive Outlook’. The rating denotes the company’s strong capacity to manage the risks inherent in asset management and the asset manager meets high investment management industry standards and benchmarks.

The rating reflects the company’s capacity to establish a strong asset management platform in an increasingly competitive operating environment. This capacity emanates from a well-qualified management team, implementation of effective supporting systems and risk management policies, and association with a leading commercial bank – MCB Bank Limited. The management has devised a well chalked out plan to achieve rapid expansion in assets under management by capitalizing on the strong franchise and distribution network of its parent bank. However, given the short-track record of the company, the extent of success in achieving these plans and the related timeline remains to be seen. Meanwhile, efficacy of the systems and processes also needs to be fully tested.

About the company: MCB AMC, a wholly owned subsidiary of MCB Bank Limited (MCB) commenced operations in Feb06. MCB, the fourth largest bank in Pakistan in terms of asset size, has an extensive network of around 950 branches. The major shareholding in the bank is held by Nishat Group – one of the distinguished business groups in Pakistan, with interest in textiles, cement, and financial sectors. The bank has very strong financial position, evidenced by a long-term entity rating of AA+ by PACRA.

The current Chief Executive, a CFA charter holder, has experience in research with leading international investment banks. In his previous assignment, he was heading the investment banking division in MCB. The management is in the final process of simultaneously launching both a money market fund and an equity fund in early 2007.
 
The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity.

PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings.

PACRA's opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.

 

    
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