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The Pakistan Credit Rating Agency Limited (PACRA) has placed entity ratings of NIB Bank Limited (Long-term: A+, Short-term: A1) on Rating Watch with positive implications.

The rating action emanates from NIB Bank’s intention to acquire majority ownership stake in Pakistan Industrial Credit and Investment Corporation Limited (PICIC). NIB is in the process of initiating a formal due diligence exercise.

PACRA would continue monitoring all related developments, while the ratings would remain on the Rating Watch till the conclusion of the said transaction. The ratings would be reaffirmed thereafter, particularly after reviewing the implications with reference to business prospects and the risk profile of the merged entity.

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.