The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (29-March-2005)
    PACRA Maintains Entity Ratings of Soneri Bank Limited and Assigns Rating to its Proposed TFC Issue
 

 
Analyst
Shahzad Saleem
(+92-42-586 9504)
shahzad@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 Soneri Bank Limited at ‘AA-‘ (Double A minus) and ‘A1+' (A one plus), respectively. These ratings, applicable to senior unsecured creditors (depositors) of the bank, denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments

The proposed unsecured, subordinated term finance certificates issue of PKR 1,200mln by Soneri Bank Limited has been assigned a rating of ‘A+' (Single A plus). The rating denotes a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.

The ratings reflect the bank's prudent stance towards risk, demonstrated in its very good asset quality, while continuing a steady asset growth, thereby maintaining its sector share of around 2%. The ratings also take into account the bank's recently initiated comprehensive plan to further strengthen its risk management systems.

About the issuer – the bank: SBL, operating a countrywide branch network of 52 branches, commenced its operations in 1992. The Feerasta family, owners of the Rupali group, holds the controlling stake in the bank. The group's primary activities are centered on the synthetic textile industry. The group, through Ferrasta family members and nominees, maintains a dominant position on the bank's board of directors. The bank's main activities are short-term lending, mainly foreign trade related financing and running finance. These activities are mainly focused in the corporate sector, followed by SMEs. The President and Chief Executive, a banker with over four decades of domestic and international banking exposure, manages the operations of the bank through a team of experienced professionals.

About the issue: The proposed unsecured subordinated TFCs would have a tenor of 8 years carrying mark-up, payable semi-annually, at a floating rate of latest 6-month KIBOR plus 1.6%. The principal will be redeemed in four equal semi-annual installments starting from the 78 th month from the issue date.

 
 
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.