The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (28-June-2006)
    PACRA Maintains Entity and TFCs Ratings of
Soneri Bank Limited
 

 
Analyst
Ahmad Nouman
(+92-42-586 9504)
nouman@pacra.com

 

 

 











 

 

 

 

 

 

 

 

 

 

Disclaimer
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The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term entity ratings of Soneri Bank Limited (SBL) at “AA-” (Double A minus) and “A1+” (A one plus), respectively. These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments

The ratings of unsecured, subordinated term finance certificates of PKR 1,200mln by Soneri Bank Limited has been maintained at “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 business philosophy that encompasses a conservative stance towards risk while maintaining a stable, albeit modest, asset growth. The bank, despite consistently higher growth by some peers, intends to continue its prudent asset deployment strategy, while gradually expanding its outreach. Meanwhile, it is working on enhancing its fee-based earnings mainly through investment banking activities. The ratings also take into account the management’s structured efforts to further strengthen the risk management systems.

About the bank: SBL, commencing its operations in 1992, currently operates a network of 60 branches. 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 Feerasta family members and nominees, maintains a dominant position on the bank’s board of directors. 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 TFC issue: SBL issued unsecured subordinated TFCs of PKR 1,200mln for a tenor of 8 years in May 2005. The profit payment, to be made semi-annually, will be based on 6 month KIBOR plus 160bps. The principal will be redeemed in four equal semi-annual installments starting from the 78th month (October 2011) from the issue date. The TFC holders are exposed to a relatively higher risk, as the obligations towards the TFC holders are subordinate to those of other creditors including depositors of the bank.

 
 
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