Press Release

JCR-VIS Maintains Entity Ratings of Tameer Microfinance Bank Limited

Karachi, November 30, 2010: JCR-VIS Credit Rating Company Limited has maintained the entity ratings of Tameer Microfinance Bank Limited (Tameer) at ‘A-/A-2’ (Single A Minus/A-Two) with ‘Stable’ Outlook.

In view of recent floods, JCR-VIS had placed ratings outstanding in the microfinance sector under ‘Rating Watch – Developing’ status on September 06, 2010. Having reviewed the loan portfolio of Tameer, Rating-Watch has been removed and ratings have been maintained. The bank had very limited exposure to the agricultural sector and the floods have not directly caused any material adverse effects on portfolio quality. The bank has exposure to areas that may face economic challenges on account of indirect impact of flood; however loan losses may be limited as secured lending represents a significant proportion of outstanding loan portfolio. Revenue sources of the bank have diversified further as income from branchless banking operations has also started to come in, with income other than return on micro-loans now comprising an increasing proportion of total revenues.

Future strategy of the bank entails strong growth in the loan portfolio, funding for which will be tapped through various channels. The cornerstone of the growth strategy is enhanced focus on client retention.

For further information on this rating announcement, please contact Ms. Sabeen Saleem, CFA (Ext: 510) or Ms. Sobia Maqbool, CFA (Ext: 506) at 35311861-70 or fax to 35311873.


Faheem Ahmad
President & CEO

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 December 01, 2010 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.