Pakistan Industrial Credit and Investment Corporation Limited (PICIC)

The Pakistan Credit Rating Agency Limited	Press Release
a
Rating Action Lahore: (11-December-2006)

PACRA Maintains Ratings of Pakistan Industrial Credit and Investment Corporation Limited (PICIC) on RatingWatch

Analyst
Shahzad Saleem
(+92-42-586 9504)
shahzad@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.

In July 2005, the Pakistan Credit Rating Agency Limited (PACRA) placed the entity ratings of Pakistan Industrial Credit and Investment Corporation Limited (Long-term: AA, Short-term A1+) on Rating Watch on account of the proposed merger with its subsidiary – PICIC Commercial Bank Limited. While the earlier proposal has been overtaken by the new development regarding prospects of acquisition of PICIC by NIB Bank Limited, PICIC’s ratings remain on Rating Watch.

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 proposed transaction.

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.