Press Release
JCR-VIS maintains the rating of Meezan Bank Limited at A+
Karachi, July 4, 2005: JCR-VIS has maintained the medium to long term rating of Meezan Bank Limited (MBL) at A+ (Single A Plus) with a ‘Stable’ outlook.
MBL was the first bank in Pakistan to be granted license of a Scheduled Islamic Commercial Bank and within a short span of time it has managed to develop its strong franchise value as an Islamic bank.
The bank has registered steady growth in assets while maintaining the credit quality of its exposures. With the recent rights issue, paid up capital has also increased to Rs. 1.7b improving its level of capitalization and the capacity to grow further. As a result of high growth and better utilization of its capital, the loans to deposits ratio is high, although in line with its peer group in the industry. Accordingly we have revised the short-term rating of the bank to A-1 (A-One). These short-term ratings denote, “high certainty of timely payments, liquidity factors are excellent and supported by good fundamental protection factors, risk factors are minor”.
The bank has continued to expand its branch network, thereby increasing its presence to new cities, and increased investment in IT which has resulted in higher overheads. However, as increasing levels of business are mobilized with a larger infrastructure, efficiency levels are likely to improve.
For further information on this rating announcement, please contact Mr. Muhammad Ameen (Ext: 235) or Ms. Sabeen Saleem (Ext: 222) at 5671822/5671833/5680996 or fax to 5681105/5671600.
Safdar Kazi
Member Rating Committee &
Coordinator, International Affiliates