The Pakistan Credit Rating Agency (PACRA) has assigned a long-term rating of “A-” (A minus) and a short-term rating of “A2” (A Two) to Atlas Bank Limited (ATBL). These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.

The ratings reflect ATBL’s potential capacity to establish a niche in the increasingly competitive commercial banking sector. This capacity flows from: (a) the established investment banking platform of the bank and (b) leveraging the group’s franchise and established business relationship to create a captive clientele. At the same time, it could take some time for the bank to completely overcome its inherent constraints: the low deposit base, limited outreach, and pressure on spreads. The new sponsors – Atlas group – have formulated a well-conceived business strategy to deal with these constraints. The strategy includes putting in place the requisite infrastructure including a competent management team, technology initiatives and expanded branch network.

About the bank: Atlas Bank Limited, previously Dawood Bank Limited, commenced operations in March 2004. Atlas group, through its holding company – Shirazi Investments (Pvt.) Limited – and the Shirazi family, acquired majority shareholding of the bank in December 2005. On July 29 2006, Atlas Investment Bank Limited, one of the biggest investment banks in the country, was merged with ATBL. Atlas Group, established in 1962, has diversified into various industrial and service-oriented businesses including auto, engineering, financial, and trading sectors. The bank would continue to derive benefits from its association with the Atlas group.

As a result of merger, ATBL’s human resource has been strengthened. The second tier management positions have mostly been filled, while the bank is in the process of filling in some key positions, with the process expected to be completed within 2006. Going forward, stability of the core management team would play a pivotal role in successful implementation of the business strategy.