Press Release

JCR-VIS Upgrades Entity Ratings of Tameer Microfinance Bank Limited to A

Karachi, April 29, 2011: JCR-VIS Credit Rating Company Limited (JCR-VIS) has upgraded the entity ratings assigned to Tameer Microfinance Bank Limited (Tameer) from ‘A-/A-2’ (Single A Minus/A Two) to ‘A/A-1’ (Single A/A One). Outlook on the assigned ratings is ‘Stable.’

Telenor Pakistan Limited (TPL) possesses controlling share in Tameer and has provided considerable financial and structural support to the bank. Besides being the second largest telecommunications operator in the country, TPL is a 100% owned subsidiary of Telenor Group, which enjoys international credit rating of ‘A-/A-2’. The rating assumes implicit support in terms of liquidity and equity, in case the need arises.

The rating upgrade incorporates healthy growth in asset base exhibited by the bank in 2010. The advances portfolio doubled during the year, highlighting Tameer’s strategic focus on core banking operations for growth. Since growth is largely attributable to expansion of the secured loan portfolio, credit risk has remained stable. Moreover, qualitative changes to the lending process have contributed to reducing the rate of delinquency to feature strong asset quality. Diversification in the portfolio product mix is however important for sustained growth.

Liquidity reserves are sufficient vis-à-vis financial obligations. However, cultivating stronger deposit access in the retail market will assist the bank in managing both liquidity and spreads, going forward. Profitability depicted considerable improvement, with core loss (net of grant income) reducing and increased contribution from branchless banking. Inclusive of grant income, the bank posted profits for 2010. Capital adequacy ratio is likely to remain above the minimum regulatory requirement in the foreseeable future.

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 April 29, 2011 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.