The Pakistan Credit Rating Agency (PACRA) has upgraded the long-term rating of First Habib Modaraba to “AA” (Double A) while maintaining the short-term rating at “A1+” (A one plus). “A1+” is the highest level in PACRA's rating scale for short-term rating. The ratings indicate a very low expectation of credit risk and very strong capacity for timely payment of financial commitments.

The ratings reflect the Modaraba's outstanding asset quality, track record of sound profitability emanating from established core operations and continued affiliation with Habib group. The ratings also take into account the proposed enhancement in capital, which, while reducing gearing, would also have positive impact on the risk absorption capacity of the Modaraba.

About the Modaraba: First Habib Modaraba (FHM) is a Habib Group (HG) entity. The Habib Group (HG) is one of the largest business groups of Pakistan, with presence in most sectors of the economy, especially the financial sector. Listed in 1985, FHM is a perpetual multipurpose Modaraba. It is engaged primarily in the leasing business. The leasing portfolio is balanced between plant & machinery and vehicle leasing.

FHM continues to maintain an infection-free lease portfolio, which demonstrates good credit evaluation and effective risk management policies with highly competent management team. The Modaraba is also planning to move into new areas, which are expected to provide diversification in its business.