The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (13-June-2005)
    PACRA Maintains Entity Ratings of Askari Commercial Bank Limited at AA+, A1+
 

 
Analyst
Maimoon Rasheed
(+92-42-586 9504)
maimoon@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 maintained the long-term and short-term entity ratings of Askari Commercial Bank Limited (ACBL) at “AA+” (Double A Plus) and “A1+” (A One Plus) respectively. These ratings are applicable to the senior, unsecured creditors (depositors) of the bank. The rating of the first unsecured, subordinated TFC issue of PKR 1,500mln has also been maintained at “AA” (Double A). PACRA assigns “AA” (Double A) rating to the second proposed unsecured, subordinated TFC issue of PKR 1,500mln by ACBL. The ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.

The ratings reflect ACBL's ability to sustain its robust performance and maintain the low risk profile of its assets amidst an increasingly competitive operating environment. The ratings also recognize the management's conscious efforts of continuously strengthening the risk management systems.

About the bank: ACBL, operating with a countrywide network of 74 branches plus one offshore banking unit (end-04), commenced its operations in 1992 and has emerged as one of major players in the commercial banking sector of the country. Army Welfare Trust (AWT) remains its principal shareholder controlling the Board of Directors through its nominees. AWT has business interests spread across a wide range of economic and industrial sectors. ACBL offers a full range of commercial banking services to the corporate, middle market and retail segments.

About the issues: The first unsecured, subordinated TFC issue of PKR 1,500mln has a tenor of 8 years starting February 2005. The profit payment is made semi-annually, based on 6-month KIBOR plus 1.5%. The principal will be redeemed in a bullet payment at the maturity of the instrument. The second proposed unsecured, subordinated TFC issue of PKR 1,500mln has similar terms and conditions.

 
 
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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