Press Release

JCR-VIS Removes ‘Rating Watch Status’ from Ratings of Pak Oman Microfinance Bank Limited

Karachi, December 30, 2010: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of Pak Oman Microfinance Bank Limited (POM) at ‘BBB+/A-3’ (Triple B Plus / A-Three). Outlook on the rating is ‘Stable’.

The ratings had previously been placed on ‘Rating Watch – Developing Status’ in the wake of widespread flooding during 2010. No significant delinquency in POM’s loan portfolio due to direct effect of the floods has been observed thus far; however, rampant inflation and the indirect impact of floods still pose a significant challenge for the entire microfinance sector. The proportion of microfinance loans in the overall resource base has remained low with investment in liquid avenues comprising major proportion of total assets. Loss absorption capacity of the bank is also adequate on account of the bank’s equity base, which is well in excess of regulatory minimum capital requirement of microfinance banks for 2011.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sabeen Saleem (Ext: 510) at 35311861-70 or fax to 35311873.



Faheem Ahmed
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 30, 2010 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.