Press Release

JCR-VIS Assigns Entity Ratings to Arif Habib Limited of 'AA-/A-1'

Karachi, June 24, 2015: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has assigned initial entity ratings to Arif Habib Limited (AHL) of ‘AA-/A-1’ (Double A Minus/A-One). Outlook on the assigned ratings is ‘Stable’.

Ratings take into account sponsor profile of AHL with majority shareholding vested with Arif Habib Corporation Limited (AHCL). The sponsor is a holding company of Arif Habib Group, which is one of the leading business groups of Pakistan - it owns significant interests in fertilizer, securities brokerage, cement, steel, real estate development and asset management. AHCL’s assets amount to Rs. 37 billion with an equity base of Rs. 28 billion.

AHL is one of the largest brokerage and financial services company with net worth of Rs. 2.36 billion and engaged in the provision of equity trading, corporate finance/advisory, debt capital market, research and forex services. Senior management includes individuals with in-depth market knowledge and experience in their relevant field.

AHL has made significant headway in domestic brokerage and is expected to further expand business through international clientele. For the past two years profitability has shown improvement with contribution from all the business functions of the company. Profitability has also been supported by gains booked on AHL’s own investments.

On the corporate finance side, AHL has managed to secure mandates under the privatization program undertaken by the government as well as various private sector transactions with clients including prominent institutions such as Habib Bank Limited, United Bank Limited, Pakistan Petroleum Limited and Saif Power Limited.

In order to manage balance sheet risk, there are limits in place for leverage, underwriting and proprietary equity investments. JCR-VIS will continue to track performance of the company against the same.

For further information on this rating announcement, please contact the undersigned (Ext: 508) or Ms. Sobia Maqbool, CFA (Ext: 604) at (021)35311861-70 or fax to (021)35311872-3.




Mohammed Khalid Ali
Advisor



Applicable Rating Criteria: Methodology - Securities Firms Rating (May 2015)

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 June 24, 2015 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.