The Pakistan Credit Rating Agency Limited (PACRA) has assigned a rating of  “AA-” (Double A minus) to the proposed unsecured, subordinated term finance certificates issue of PKR 1,500mln by Bank AL Habib Limited. The rating denotes a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.

The rating reflects BAHL’s low risk appetite reflective in its very good asset quality. The commitment of the management to protect the established brand image through service quality and prudent banking practices supplements its core business strategy. Meanwhile, continuous efforts of the bank to further strengthen the risk management systems is considered a key-rating factor. At the same time, the ratings recognize the bank’s ability to sustain relative performance through continuing focus on business expansion and product innovation in the fast changing dynamics of the banking sector.

About the issuer - the bank: BAHL’s sponsors are members of the Habib family – the oldest and a distinguished name in Pakistan’s banking circles. They are active in the management of the bank and are backed by a team of experienced professionals most of which have been with the bank since its inception.

The bank’s main activities are short-term lending, mainly trade finance related and seasonal running finance. Its future strategy envisages growth through further expansion of branch network, while maintaining the Habib hallmark of a conservative risk profile. BAHL continues to strengthen its technological platform and human resource base.