The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (04-May-2006)
   

PACRA Upgrades Ratings of MCB Bank Limited
 

 
Analyst
Shahzad Saleem
(+92-42-586 9504)
shahzad@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 upgraded the long-term entity rating of MCB Bank Limited to “AA+” (Double A plus), while maintaining the short-term rating at “A1+” (A one plus). The rating of unsecured subordinated TFC issue of PKR 1,600mln has also been upgraded to “AA” (Double A). These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.

MCB’s ratings reflect the bank’s very strong risk absorption capacity emanating from its strengthened capital structure supplemented by a sound asset quality. The ratings also take into account the management’s demonstrated ability of aligning the operations in line with the changing dynamics of the sector enabling the bank to remain well positioned to face competitive pressures.

About the TFC Issue: MCB issued unsecured subordinated TFC of PKR 1,600mln during August 2002 for a tenor of 5½ years at a floating rate of latest cut-off yield on 5 year PIB plus 1.50% with a floor of 11.75% and a cap of 15.75%. Major principal redemption will be in three unequal installments commencing February2007.

About the bank: A number of distinguished corporate groups, led by Nishat group, jointly own majority stake in MCB since its privatization in 1991. MCB continues to derive substantial benefits from the resourcefulness, financial strength and business acumen of the members of Board of Directors. The President & Chief Executive, Mr. Mohammad Aftab Manzoor, has extensive banking experience locally and abroad and has been in this position for the last six years. A highly experienced and distinguished team of senior management assists him. MCB currently operates an extensive network of 947 domestic and 5 overseas branches with a leading position in automated banking services. The bank has a market share of around 9% in the total deposits of the scheduled banking system.
 
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