PACRA MAINTAINS THE RATING OF

FIRST HABIB MODARABA

 

Lahore: March 07, 2002

The Pakistan Credit Rating Agency (PACRA) has maintained First Habib Modaraba's financial strength rating at 'A3' (A Three). The rating denotes an outstanding financial condition with consistent record of above average performance. FHM is one of only two Modarabas that has been placed in "A" category rating. This is the highest rating band in PACRA's rating scale for Modarabas.

While assigning the rating, PACRA has recognized the consistent performance trends and continued outstanding asset quality, which is an outcome of prudent credit policies and effective post disbursement monitoring. Going forward, the asset quality and sound financial health of the Modaraba is expected to be sustained considering the highly competent management team of FHM. The rating also reflects continued strong support arising out of the affiliation with the Habib Group.

Effective this year, the nomenclature for the rating has been changed from Individual Rating to Modaraba Financial Strength Rating. The change is primarily to fully reflect the methodology of Modaraba ratings, which focus on the overall financial strength of the Modaraba. The rating definitions remain unchanged.