PACRA UPGRADES THE RATINGS OF

PAKISTAN INDUSTRIAL CREDIT & INVESTMENT

CORPORATION (PICIC)

 

Lahore: June 14, 2002

The Pakistan Credit Rating Agency (PACRA) has upgraded PICIC's long-term and short-term ratings to 'A' (single A) and 'A1' (A one), respectively.

The rating upgrade is in recognition of the enhanced risk absorption capacity of PICIC emanating from a stronger financial structure. At the same time, PICIC's strong liquidity position provides adequate comfort for meeting short-term obligations. Going forward, core earnings are expected to improve on the back of greater focus on lending operations. The management has also put in place an effective system of credit evaluation and monitoring for minimising potential risk while expanding the loan portfolio.

The current management has been shrewd in diversifying operations beyond traditional development finance activity to commercial banking and leasing, with plans in hand to also venture into other areas - consistent with the vision of creating a 'financial super market'.

While the NPL portfolio continues to weigh down profitability, prudent provisioning policy and continuing success in settlement and recovery of delinquent loans mitigates the risk of any material potential loss.