The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (02-March-2005)
    PACRA Maintains The Ratings of Orix Investment Bank Limited
 

 
Analyst
Arshad Arif
(+92-42-586 9504)
arif@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 entity ratings of Orix Investment Bank Pakistan Limited (OIBPL) at ‘A' and ‘A1' respectively. These ratings, applicable to senior unsecured creditors of the bank, indicate a low expectation of credit risk and a strong capacity for timely payment of financial commitments.

The ratings of OIBPL reflect virtually maintained overall risk profile with declining trend in the bank's profitability. The ratings also recognize the management's efforts at diversifying the revenue stream to arrest this trend. Meanwhile, the implicit support from the parent group has also been factored in.

About the bank: ORIX Investment Bank Pakistan Limited (OIBPL) was incorporated in July 1995 and commenced operations during the 2Q 1996, with a paid-up capital of PKR 200 mln that was further enhanced to PKR 300 mln by way of rights issue during FY2003. OIBPL is listed on the Karachi and Lahore Stock Exchanges of Pakistan. The main sponsors of OIBPL are ORIX Corporation of Japan (OCJ) and ORIX Leasing Pakistan (OLP) with 20% and 15% shareholding respectively. The other shareholders include local and foreign financial institutions and individuals.

The bank's core business activities include short-term lending, fund placements, treasury operations, money market brokerage, equity broking and financial and advisory services.

 
 
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.