Press Release
JCR-VIS Upgrades Entity Ratings of First Credit and Investment Bank Limited
Karachi, December 31, 2008: JCR-VIS Credit Rating Company Limited (JCR-VIS) has upgraded the medium to long-term entity rating of First Credit and Investment Bank Limited (FCIBL) from ‘BBB+’ (Triple B Plus) to ‘A-’ (Single A Minus). Short-term rating has been maintained at ‘A-2’ (A-Two). Outlook on the medium to long term rating is ‘Stable’.
The upgrade takes into account the enhanced equity base of the company, providing the institution with additional loss absorption capacity, and the management’s cautious and prudent approach. By way of an initial public offering, the company achieved listing on the Karachi Stock Exchange. The holding of National Bank of Pakistan and WAPDA has been reduced to 30.8% each.
During 2008, the company saw a slight decline in its resource base as the management chose to adopt a conservative approach, and exposures in equities, both direct and indirect, saw a decline, thereby minimizing the impact of adverse stock market performance on the company’s financials. Exposures in TFCs have been built over the past year, with some of them possessing relatively higher degree of risk. In the near future, FCIBL plans to maintain its conservative stance in view of the current macroeconomic and business environment.
For further information on this rating announcement, please contact Mr. Safdar Kazi (Ext: 501) or Ms. Sobia Maqbool (Ext: 506) at 5311861-5311870 or fax to 5311873.
Faheem Ahmad
President & CEO