PACRA ASSIGNS THE RATING OF 'A-' & 'A2' TO

FIRST PUNJAB MODARABA

 

Lahore: February 04, 2003

The Pakistan Credit Rating Agency (PACRA) has assigned the ratings of 'A-' (Single A Minus) and 'A2' (A Two) for the long-term and short-term, respectively, to First Punjab Modaraba. The ratings denote a low expectation of credit risk and a strong capacity for timely payment of financial commitments.

The ratings of First Punjab Modaraba reflect a stable performance and maintained asset quality. Given the predominantly equity based structure, the Modaraba continues to have a strong capacity to absorb potential risk. While the Modaraba is well positioned to target leveraged growth, the management has so far retained its conservative strategy of limited growth with a low reliance on borrowing.

As agreed with the Modaraba Association of Pakistan, PACRA has assigned the ratings according to the Standard Rating Scale as against the Modaraba Financial Strength Rating Scale previously followed. The adoption of the Standard Rating Scale is primarily to make modarabas comparable with other entities.