PACRA MAINTAINS THE RATINGS OF

SONERI BANK LIMITED

 

Lahore: July 03, 2002

The Pakistan Credit Rating Agency (PACRA) has maintained the long-term rating of 'AA-' (Double A minus) and a short-term rating of 'A1+' (Single A One plus) for Soneri Bank Limited (SBL). These ratings denote a very low expectation of credit risk emanating from the very strong capacity for timely payment of financial commitments. The ratings are applicable to the senior unsecured creditors of the bank.

While maintaining the ratings, PACRA has taken cognizance of SBL's strong risk absorption capacity emanating from a sound capital structure, increased Capital Adequacy Ratio, improved performance and the continuing low proportion of NPLs reflecting the low risk strategy and prudent management. Going forward, SBL's rate of progress, like other financial sector entities, may be affected by the recessionary economic environment, narrowing spreads and relatively low credit demand. However, the declining incidence of tax, as recently announced, would have a salutary effect on the bank's bottomline.