Press Release
JCR-VIS reaffirms Entity Ratings of Pak Brunei Investment Company Limited at AA+/A-1+
Karachi, June 28, 2013: JCR-VIS Credit Rating Company Limited has reaffirmed the entity ratings of ‘AA+/A1+’ (Double A Plus/A One Plus) assigned to Pak Brunei Investment Company Limited (PBICL). Outlook on the assigned ratings is ‘Stable’.
The ratings assigned to PBICL incorporate the joint venture shareholding structure of the company with Government of Pakistan, through the Ministry of Finance and Brunei Darussalam through Brunei Investment Agency (BIA) being equal shareholders. All board members are senior professional from the investing entities and maintain active oversight of the business operations. The institution is managed by a qualified team of professionals having significant experience in the financial sector.
Lending portfolio depicted growth during the year. A separate SME financing division was set up under the Corporate Banking Group during 2012 to broaden the scope of lending activities. Moreover, the institution also provides revival financing to distressed clients including capital injection, governance guidelines and strategic advice. The institution plans to grow in this avenue, going forward. Strong internal controls and risk management infrastructure has resulted in strong portfolio quality indicators.
PBICL has made investments, amounting to 38% of its equity base, in a wholly owned asset management company and its money market fund. This is classified as a strategic investment. Liquidity indicators are considered sound, despite some weakening on a timeline basis. Profitability indicators remain stable with ROAE reported at 9.5% for FY12. Capital Adequacy Ratio remains significantly high, providing the institution ample room to grow operations and absorb any unforeseen losses.
For further information on this rating announcement, please contact the undersigned (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 604) at 021-35311861-70 or fax to 021-35311873.
Jamal Abbas Zaidi
Deputy CEO