PACRA ISSUES RATINGS OF NIB AND

WITHDRAWS RATINGS OF NDLC

 

Lahore: October 21, 2003

Following the merger of National Development Leasing Corporation Limited (NDLC) and the Pakistani branches of International Finance Investment and Commerce Bank Limited (IFIC) with and into NDLC-IFIC Bank Limited (NIB), PACRA's ratings for NDLC have been withdrawn. PACRA has reviewed and evaluated the plans presented by the management of NIB for the post-merger operations of NIB including its projected financial position. Accordingly, PACRA is pleased to advise that the long-term rating of NIB has been determined at 'A' (Single A) and the short-term rating at 'A1' (A One). These ratings, which are provisional, imply that there is a low expectation of credit risk and the capacity for timely payment of financial commitments is considered strong.

The above mentioned provisional ratings of NIB are subject to review after detailed evaluation of the audited accounts of NDLC for the year ended 30th June 2003 (which have been published on 29th September 2003), the audited accounts of IFIC as at 2nd October 2003, and the audited accounts of the merged entity (NIB) as at 2nd October 2003.

NDLC had issued TFC of PKR 500.22mln in 1999 of which the presently outstanding principal amounts to PKR 333.11mln with rating of 'A+' (A Plus). As a consequence of the merger and creation of the new entity, NDLC-IFIC Bank Limited (NIB), all the liabilities of NDLC including the TFC obligations stand transferred to NIB. The rating of this TFC is placed on RatingWatch pending finalization of the ratings of NIB.