Press Release
VIS Reaffirms Entity Ratings of First Paramount Modaraba
Karachi, March 11, 2026: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of First Paramount Modaraba (“FPM” or “Modaraba”) at 'BBB/A3' (Triple B/A Three) with a “Stable” outlook. Medium to long term rating of ‘BBB' indicates adequate credit quality; Protection factors are reasonable and sufficient. Risk factors are considered variable if changes occur in the economy. Short term rating of 'A3' indicates fair likelihood of timely repayment of short-term debt obligations with satisfactory liquidity factors. Previous rating action was announced on January 16, 2025.
FPM is a multipurpose, perpetual and multidimensional Modaraba floated under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and the rules framed there under. It is managed by Paramount Investments Limited (the Management Modaraba), a company incorporated in Pakistan under the repealed Companies Ordinance, 1984 in June, 1994. The Modaraba is listed on the Pakistan Stock Exchange Limited while its registered office is located in Karachi. The Modaraba's principal activities include deployment of funds on Murabaha, Modaraba and Mutharika arrangements, along with operating multiple in-house business ventures including electrical maintenance and troubleshooting services under the name of ‘FPM Solutions’, chemical business under the name of ‘FPM Petro Services’ and anti-money laundering screening services under the name ‘FPM AML – CHECK’.
The assigned ratings reflect FPM’s established presence in the modaraba sector, diversified business model, and adequate liquidity profile. The Modaraba has increasingly relied on its flagship in-house business venture, FPM Petro Services, which remains the primary revenue earner and has supported overall top line growth despite a contraction in the core financing portfolio. Asset quality indicators have improved, with a very low level of non-performing portfolio and a predominantly secured book, underpinning manageable credit risk. Liquidity remains sound, underpinned by a comfortable current ratio and supported by substantial receivables and inventory levels. Capitalization has strengthened gradually through internal profit retention; however, equity remains below the prescribed regulatory threshold and the required minimum rating level, with extension request pending with the regulator. The proposed capital enhancement initiatives, if executed as planned, are expected to materially bolster the equity base and support compliance. Governance structures and Shariah compliance frameworks are satisfactory.
For further information on this rating announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Non-Bank Financial Companies
https://docs.vis.com.pk/Methodologies%202024/NBFCs202003.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf