The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (29-June-2005)
   

PACRA Maintains Ratings of Prime Commercial Bank Limited (PCBL)

 

 
Analyst
Ambreen Irfan
(+92-42-586 9504)
ambreen@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.

  

PACRA has maintained the long-term and short-term entity ratings of Prime Commercial Bank Limited at “A+” (Single A Plus) and “A1” (A One) respectively. These ratings are applicable to senior unsecured creditors (depositors) of the bank. The rating of the unsecured subordinated TFC issue of PKR 800mln has been maintained at “A” (Single A) . These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.

The ratings reflect the bank's strategy of measured and steady growth. While earnings have been largely stable, supported by an increasing proportion of core earnings, this strategy has precluded any dramatic gain in performance experienced by some other banks in the last few years. At the same time, the bank's relatively low risk appetite and strengthened capital structure places it in a comfortable position to face any unexpected downside.

About the bank: After commencing operations in 1992, Prime Commercial Bank Limited (PCBL) currently operates with a network of 49 branches. Arab Asian International Holding Company, registered in Bahrain, holds the major stake in the bank. This company is owned by members of a Saudi family belonging to a highly regarded, very sizeable and well diversified business group of Saudi Arabia.

Short-term working capital and trade related financing activities form the core business area of the bank. Its future strategy envisages continued but gradual growth through the expansion of its branch network, with major focus on the middle market segment of the economy.

The President and Chief Executive, who has held the position since the bank's inception, possesses over 30 years of international and domestic banking experience. A team of senior executives who have extensive exposure to banking and finance assists him.

About the TFC issue: PCBL issued an unsecured subordinated TFC in November 2004 for a tenor of 8 years carrying mark-up at a floating rate of latest 6-month KIBOR plus 1.9% payable semi-annually. Principal redemption will be in four equal annual installments commencing from the 60th month of the issue.
 
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