The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (29-June-2005)
   

PACRA Maintains Ratings of Saudi Pak Commercial Bank Limited (SPBL)

 

 
Analyst
Moin Khalid
(+92-42-586 9504)
moin@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 Saudi Pak Commercial Bank Limited at “BBB” (Triple B) and “A3” (A three), respectively. The ratings have been assigned a positive outlook. These ratings, applicable to senior unsecured creditors (depositors) of the bank, denote a low expectation of credit risk emanating from an adequate capacity for timely payment of financial commitments.

The ratings reflect an improving trend in the overall risk profile and rising core earnings through volume growth. The ratings also take into account the continuing overhang of the accumulated, though reducing, losses. The positive outlook also reflects the strategy evolved by the bank's new management for strengthening the future positioning and standing of the bank. However, the implementation of the strategy and the impact thereof remains to be seen At the same time, the ratings also recognize the continuing support of the parent company in meeting the capital requirements.

About the bank: SPBL, formerly Prudential Commercial Bank since 1995, commenced operations as Saudi Pak Commercial Bank in 2001. The bank is the subsidiary (54.3% holding) of Saudi Pak Agriculture and Investment Company, a project of the governments of Pakistan and Saudi Arabia.

The bank currently operates with a network of thirty-eight branches, and plans to expand it to fifty by the end of 2005. The bank's main activities are short-term lending through working capital and trade related finance. In addition, the bank now has a fully operational consumer finance division, offering numerous financing products tailor made for various consumer market segments.

The current President & Chief Executive, who joined SPBL recently in Feb 05, has an extensive international and local banking experience. He is currently in the process of building a team of experienced and distinguished professionals, to assist him in his overall plans for revitalizing the institution.
 
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