Press Release
JCR-VIS Maintains Medium to Long Term Entity Rating of Pak Oman Microfinance Bank Limited at BBB+
Karachi, April 30, 2008: JCR-VIS Credit Rating Company Limited (JCR-VIS) has maintained the medium to long term entity rating of Pak Oman Microfinance Bank Limited (POM) at ‘BBB+’ (Triple B Plus). Short term rating has been lowered from ‘A-2’ (A-Two) to ‘A-3’ (A-Three) and outlook on the medium to long term rating has been revised from ‘Stable’ to ‘Negative’.
During the outgoing year, the bank fell short of targets to be achieved in terms of disbursements, deposit mobilization and profitability, as it made efforts to become sustainable. The new management, however, has embarked upon the goals of developing necessary control infrastructure, implementing sound IT systems and an effective monitoring mechanism with renewed efforts.
The equity of the bank has declined below the minimum capital requirement prescribed by the State Bank of Pakistan due to losses suffered, since inception. The major sponsors namely Sultanate of Oman, however, remain committed to the mission of the bank and have indicated their plan to inject equity to meet the minimum paid-up capital requirement (net of losses) of Rs. 500 million by December 2008. JCR-VIS will monitor trends in this regard.
For further information on this rating announcement, please contact Ms. Sabeen Saleem (Ext: 608) or Ms. Sobia Maqbool (Ext: 506) at 5311861-70 or fax to 5311873.
Faheem Ahmad
President & CEO