PACRA UPGRADES RATINGS OF

FIDELITY INVESTMENT BANK LIMITED (FIBL)

 

Lahore: March 25, 2003

The Pakistan Credit Rating Agency (PACRA) has upgraded the long-term entity rating of Fidelity Investment Bank Limited to "BBB+" (triple B plus) and maintained the short-term entity rating at "A2" (A two). The entity ratings are applicable to senior unsecured creditors of the bank. These ratings indicate a low expectation of credit risk and adequate capacity for timely payment of financial commitments.

While updating the ratings, PACRA has taken note of FIBL's improved risk absorption capacity emanating from an expanding equity base through internal generation and higher contribution to net earnings through increased treasury and capital market operations. The ratings also recognise FIBL's exposure to volatility risk owing to sizable investment in equities, albeit mitigated by unrealised appreciation and good quality portfolio. The ratings have been placed on Rating Watch due to the pending merger with a commercial bank.