Press Release

JCR-VIS reaffirms the ratings of First Paramount Modaraba

Karachi, January 28, 2013: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the medium to long-term entity rating of First Paramount Modaraba (FPM) at ‘BBB’ (Triple B). Short-term rating has also been reaffirmed at ‘A-3’ (A-Three). Outlook on the rating is ‘Stable’.

Ratings take into account the conservative risk profile of the modaraba, allowing it to maintain balance sheet risk at manageable levels. Moreover, a 30% rights issue has been completed recently. Profitability from continuing operations has almost doubled in FY12 due to decrease in infection and improvement in spreads during FY12. The modaraba has reduced reliance on secondary market funding by establishing access to COMs which are more stable and carry lower cost. Despite decrease in discount rate, the modaraba was able to maintain yield on financing portfolio in FY12 around prior period level resulting in improvement in spreads.

There has also been an improvement in liquid assets carried on balance sheet. Although concentration in the COM portfolio is notable, the modaraba has adequate liquidity and access to credit lines to fulfill any unexpected withdrawal requests. The modaraba’s ability to maintain portfolio quality indicators and improve profitability while maintaining leverage within prudent limits will continue to be monitored by JCR-VIS.

For further information on this rating announcement, please contact the undersigned (Ext: 408) or Ms. Sobia Maqbool, CFA (Ext: 604) at 021-35311861-70 or fax to 021-35311872-3.



Jamal Abbas Zaidi
Deputy CEO

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 January 28, 2013 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.