The Pakistan Credit Rating Agency Limited
22-Nov-23
Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
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PACRA withdraws rating of U Microfinance Bank Limited | TFC | Dec-22
| Rating Type | Debt Instrument | |
|
Current (22-Nov-23 ) |
Previous (20-Dec-22 ) |
|
| Action | Withdraw | Preliminary |
| Long Term | - | AA- |
| Short Term | - | - |
| Outlook | Stable | |
| Rating Watch | - | - |
PACRA has assigned a preliminary rating to U Microfinance Bank Limited | TFC | Dec-22 in Dec'2021. The U Microfinance Bank was intended to issue Rated, Secured, Listed, Term Finance Certificates (TFC) up to PKR 5,000mln. However, given the unpretending economic conditions and high-interest rate environment during CY22 and 1HCY23, the bond was not issued within the stipulated timeline. Now the management does not want to continue the rating. Furthermore, the fee payment period has also expired
Subsequent to the management decision, PACRA is withdrawing the TFC rating with effect from 24th Oct'2023.
About
the Entity
In 2012, PTCL acquired 100% shareholding of Rozgar Microfinance Bank Ltd, which was established in 2003, as a district-wide microfinance bank. Henceforth, its name was changed to U Microfinance Bank Limited. PTCL itself is co-owned by the Government of Pakistan (62%) and Etisalat International Pakistan (LLC) (26%) (Etisalat), a state-owned Telecom Corporation of UAE. Management control of PTCL rests with Etisalat. On 18th Oct'23, Mr. Mohamed Essa Al Taheri has been appointed as Acting CEO of the Bank is the replacement of Mr. Kabeer Naqvi.