The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (13-February-2006)
    PACRA Maintains Ratings of First Habib Modaraba (FHM)
 

 
Analyst
Sumaira Fazal
(+92-42-586 9504)
sumaira@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 ratings of First Habib Modaraba (FHM) at “AA” (Double A) and “A1+” (A one plus) for long-term and short-term, respectively. “A1+” is the highest short-term rating on PACRA’s rating scale. The ratings indicate a very low expectation of credit risk emanating from very strong capacity for timely payment of financial commitments.

The ratings reflect the efficacy of FHM’s business strategy and prudent risk management policies, which have enabled it to maintain infection free asset portfolio while ensuring sustainability of performance, despite the increasingly competitive operating environment.  At the same time, the ratings factor in the Modaraba’s strong equity base, which is currently the highest in the entire Modaraba sector.

About the 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.  The Modaraba’s operations are being managed by a highly experienced and stable management team.

FHM maintains a steady growth pattern and track record of sound profitability emanating from established core operations. Going forward, in order to maintain its position in the increasingly competitive financial market, the management plans on leveraged volume expansion that will be facilitated through improving geographical outreach.
 
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.

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