The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (17-March-2006)
    PACRA Maintains Ratings of Jahangir Siddiqui Investment Bank Limited and Places Them on Rating Watch
 

 
Analyst
Ambreen Irfan
(+92-42-586 9504)
ambreen@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 long-term and  short-term ratings of Jahangir Siddiqui Investment Bank Limited (JSIBL) at “A+” (Single A plus) and “A1” (A one) respectively. These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payments of financial commitments. The ratings have been placed on rating watch pending the outcome of the expected amalgamation with American Express Bank Limited (Pakistan Branches).

JSIBL’s ratings reflect its robust performance emanating from its continued success in optimising earnings from capital market operations. The volatility risk emanating from these operations is mitigated by the bank’s strong capital structure, as well as the sound risk management techniques employed.

About the bank: Jahangir Siddiqui Investment Bank Limited (JSIBL) commenced commercial operations in September 1993. Jahangir Siddiqui and Company Ltd. (JSCL) – the principal shareholder, with 62.41% stake in JSIBL – assumed control of the bank in September 1999. Starting as a traditional securities firm, JSCL is now the main holding company of the Jahangir Siddiqui Group.  With its considerably expanded equity and asset base, the company is embarked upon new initiatives, with a dynamic approach in identifying new growth opportunities with the proven ability to take quick but prudent investment decisions.

The present board of directors of the bank comprises seven members, majority of whom have been nominated by JSCL. Access to quality human resource, with the requisite skill sets and experience, is an important benefit derived from the bank’s association with the JS Group.

JSIBL is expected to merge with American Express Bank in the near future. Consequently, the rating has been placed on rating watch. The merged entity will be a commercial bank with an initial network of five branches. In the post-amalgamation scenario, the new entity is likely to face new challenges and far more intense competition.

 
 
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.

PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings.

PACRA's opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.