The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (08-January-2007)
    PACRA Maintains the Entity Ratings of
ORIX Investment Bank Pakistan Limited (OIBPL)
 

 
Analyst
Sumaira Fazal
(+92-42-586 9504)
sumaira@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 entity ratings of ORIX Investment Bank Pakistan Limited (OIBPL) at  “A+” (Single A plus) and “A1” (A one) for long-term and short-term, respectively. The ratings denote a low expectation of credit risk and a strong capacity for timely payment of financial commitments.

OIBPL’s ratings reflect its sustained performance, mainly an outcome of its success in establishing stable fee-based revenues – corporate finance advisory and brokerage – ahead of most peers. However, given a higher degree of reliance on human resource for sustenance of fee-based businesses, induction of additional professional staff and their retention would remain critical for effective management of expanding business volume. Meanwhile, the bank’s asset quality and risk absorption capacity remain strong.

About the bank: ORIX Investment Bank Pakistan Limited (OIBPL) was incorporated in July 1995 and commenced operations in the subsequent year. Listed on both Karachi and Lahore Stock Exchanges, OIBPL was sponsored by ORIX Corporation, Japan (ORIX) and ORIX Leasing Pakistan Limited (OLP). ORIX is the single largest shareholder (30%) of OIBPL, followed by OLP (15%). Other shareholders include local and foreign financial institutions and individuals. The bank’s business activities include short-term lending, fund placements, treasury operations, money market brokerage, equity broking and financial and advisory services.

The Board of Directors (BoD) comprises seven members including the CEO. Three directors are nominees of ORIX, two of OLP, while SaudiPak Industrial & Investment Company and Pak-Kuwait Investment Company has appointed one nominee each. The CEO - Mr. Naim Farooqui - has experience of more than 21 years in development and investment banking.
 
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.