The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (27-June-2005)
   

PACRA Maintains Ratings of Bank Al Habib Limited (BAHL)
 

 
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 Bank AL Habib Limited (BAHL) at “AA” (Double A) and “A1+” (A One Plus) respectively. These ratings are applicable to the senior, unsecured creditors (depositors) of the bank. The rating of the unsecured, subordinated TFC issue of PKR 1,350mln has also been maintained at “AA-” (Double A Minus). 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 the continued ability of the bank to maintain its relative performance from core earnings. The ratings also recognize the low risk appetite of BAHL as reflected in the consistently high asset quality. The ratings also take into account the continuing improvement in the risk management systems in line with the challenges emanating from the increasingly competitive banking environment. The bank maintained consistent and, at the same time, prudent growth during the year, primarily through providing quality service, hence improving its sector position.

About the bank: BAHL's sponsors are members of the Dawood 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 maintained growth through further expansion of branch network, all the while maintaining the Habib hallmark of a conservative risk profile. BAHL continues to strengthen its technological platform and human resource base.

About the TFC issue: The unsecured, subordinated TFC issue of PKR 1,350mln has a tenor of 8 years starting July 2004. The profit payment is made semi-annually, based on 6-month KIBOR plus 1.5% with a floor of 3.5% and a cap of 10%. Major principal redemption will be in three semi-annual installments, commencing from the 84th month of the issue.
 
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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