Press Release

Ratings of Summit Bank Limited

Karachi, February 01, 2019: JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned a ‘D’ (Default) rating to the seven year listed TFC issued by Summit Bank Limited (SBL) due to non-payment of its latest markup payment on account of lock-in-clause being invoked by the State Bank of Pakistan (SBP). The TFC had previously been assigned a rating of ‘BBB- (SO)’ (Triple B Minus (Structured Obligation)) and had been placed on ‘Rating Watch-Negative’ status in view of weakening in financial profile and delay in potential merger with another Commercial Bank. This rating action was announced on 23rd November 2018. SBL has in-principle approval of SBP for extension in maturity by one year for principal payment while the Bank also plans to pay accrued mark-up in bullet form along with principal payment after obtaining required approvals.

JCR-VIS has also suspended the entity ratings of ‘BBB-/A-3’ (Triple B Minus/A-Three) assigned to SBL due to non-availability of updated information. No financial statements have been made available after the period ended March’2018. Once required information along with latest financials is made available, JCR-VIS would reassess the ratings.

For further information on this rating announcement, please contact the undersigned (Ext: 201) at (+92-21) 35311861-70 or fax to (+92-21) 35311872-3.

Jamal Abbas Zaidi
Advisor

Applicable rating criterion: Commercial Banks Methodology (March’2018)
http://jcrvis.com.pk/docs/Meth-CommercialBanks201803.pdf

Rating the Issue (Sept 2014) http://www.jcrvis.com.pk/Images/criteria_instrument.pdf

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 February 04, 2019 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.