Press Release
VIS Upgrades Long-term Entity Rating of First Paramount Modaraba
Karachi, June 30, 2026: VIS Credit Rating Company Limited (VIS) upgrades long-term entity ratings of First Paramount Modaraba (“FPM” or “Modaraba”) from 'BBB’ (Triple B) to ‘BBB+’ (Triple B Plus) while maintains short-term rating at ‘A3' (A Three). 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. Outlook on the assigned ratings is ‘Stable.’ Previous rating action was announced on March 11, 2026.
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It is managed by Paramount Investments Limited (the Management Modaraba), a company incorporated in Pakistan under the repealed Companies Ordinance, 1984 in June, 1994.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 upgrade in the ratings reflects the significant strengthening of FPM capitalization profile following the acquisition of a controlling stake in the AML/CFT Screening Solution business. The transaction represents a meaningful diversification and supports progress toward compliance with regulatory capital requirements. The Board’s approval of a rights issue further demonstrates management’s commitment to reinforcing capitalization and sustaining future growth.
The ratings also incorporate the Modaraba’s sound asset quality indicators, characterized by a very low level of non-performing financings and prudent credit risk management practices. The financing portfolio has expanded without a corresponding deterioration in asset quality, reflecting disciplined underwriting standards and effective risk oversight. In addition, liquidity remains adequate, supported by a comfortable level of current assets relative to short-term obligations.
The Modaraba continues to benefit from a diversified business model through its financing activities and operational ventures, providing multiple revenue streams and supporting business resilience. Governance and oversight frameworks remain satisfactory, with independent board representation, separate leadership roles, and an unqualified external audit opinion
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-2025/NBFC-Nov-2025.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf