The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (31-December-2004)
    PACRA Upgrades Entity and TFCs Ratings of Atlas Investment Bank Limited
 

 
Analyst
Ammar Ali
(+92-42-586 9504)
ammar@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 upgraded the long-term entity rating of AIBL to ‘A+' (Single A plus), and the short-term rating to ‘A1' (A one). These ratings, applicable to the senior unsecured creditors of the bank, denote a low expectation of credit risk and a strong capacity for timely payment of financial commitments.

The ratings of the two tranches of secured TFCs (PKR 200 million and PKR 100 million) have been upgraded to ‘AA-' (Double A minus). This rating denotes a very low expectation of credit risk and a very strong capacity for timely payment of financial commitments.

The ratings of AIBL reflect the bank's success in continuously augmenting the bottom line through improved net interest income supplemented by substantial revenue from diversified sources. The ratings also factor in the substantially improved asset quality. The enhanced risk absorption capacity emanating from strong coverage relative to the bank's equity is also a key factor.

About the instruments: The bank has two secured TFCs in issue carrying a profit rate of 15% p.a. payable semi-annually. The first tranche (PKR 200 million) has an outstanding balance of PKR 99.9 million, with the final payment due in September 2005. The second tranche (PKR 100 million) has an outstanding balance of PKR 83.3 million, with the final payment due in August 2006. Both the issues are secured by a first pari passu charge on leased assets and related receivables with a 30% margin on the principal value.

About the bank: Atlas Investment Bank Limited (AIBL) was established in 1990 as a joint venture of the Atlas Group, the Bank of Tokyo-Mitsubishi Limited and Asian Development Bank. The bank is listed on all three bourses of the country with Atlas Group as the majority shareholder. AIBL offers a diversified range of services such as lease financing and money and capital market broking, and with an asset base of PKR 6 billion, as at September 30, 2004, it is one of the largest and most diversified of all investment banks. The eight-member BoD comprises one nominee of NIT, while the remaining seven represent the Atlas Group.

 
 
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.

 

    
stages of grief