Press Release

Ratings of Samba Bank Limited placed on ‘Rating Watch -Developing’ status
 

Karachi, October 7, 2021: VIS Credit Rating Company Limited (VIS) has maintained the entity ratings of Samba Bank Limited (‘SBL’ or ‘the Bank’) at ‘AA/A-1’ (Double A/A-One). Outlook on the assigned ratings has been revised from ‘Positive’ to ‘Rating Watch - Developing’. The long term rating of ‘AA’ signifies high credit quality; protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions. The short term rating of ‘A-1’ signifies high certainty of timely payment; liquidity factors are excellent and supported by good fundamental protection factors. Risk factors are minor. Previous rating action was announced on June 28, 2021.

The revision in outlook incorporates recent disclosure made by the Bank, intimating plans of main sponsor i.e. Saudi National Bank’, to commence orderly divestment from its investment in SBL. In light of planned divestment of main sponsor, the rating is being placed on ‘Rating Watch - Developing’, in accordance with VIS’s Banks’ Rating Methodology. VIS will continue to monitor developments in this regard on an ongoing basis.

For further information on this rating announcement, please contact the undersigned (Ext: 306) or Arsal Ayub, CFA (Ext: 214) at 021-35311861-71 or fax to 021-35311872-3.


Javed Callea
Advisor

Applicable rating criterion: Commercial Banks Methodology - June 2020
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/Meth-CommercialBanks202006.pdf

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Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2021 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

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