Press Release
VIS Reaffirms Entity Ratings of Pakistan Mortgage Refinance Company Limited
Karachi, June 03, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed entity ratings of Pakistan Mortgage Refinance Company Limited (‘PMRC’ or the ‘DFI’) at 'AAA/A1+' (Triple A/A One Plus). Medium to long term rating of 'AAA' indicates highest credit quality; the risk factors are negligible, being only slightly more than for risk-free Government of Pakistan’s debt. Short term rating of 'A1+' indicates strongest likelihood of timely repayment of short-term obligations with outstanding liquidity factors. Outlook on the assigned ratings remains ‘Stable.’ Previous rating action was announced on April 24, 2025.
The ratings assigned to PMRC benefits from strong sovereign ownership and regulatory support, with the Government of Pakistan maintaining majority shareholding and institutional linkages through key public sector stakeholders. These linkages support PMRC’s strategic mandate of promoting housing finance and development of the domestic capital market. PMRC maintains a diversified refinancing portfolio, with commercial banks constituting the largest share of exposures. Credit risk remains manageable given the refinancing model, wherein financing is extended with recourse to partner financial institutions. As at end-CY25, PMRC’s asset base expanded, supported by higher funding deployed toward investments and advances.
Asset quality indicators of the DFI remained sound, supported low infection ratios and adequate provisioning coverage. The Credit Guarantee Scheme administered by PMRC continues to support low-income housing finance through structured risk-sharing arrangements, facilitating broader participation of financial institutions in mortgage lending. Profitability of the DFI experienced some pressure due to higher funding costs, though supported by improved non-markup income and controlled operating expenses.
PMRC’s investment portfolio remains concentrated in government securities, resulting in minimal credit risk exposure, while liquidity indicators of the DFI remained robust, supported by growth in liquid assets and diversified funding sources. Capitalization of the DFI remains a key strength, with capital adequacy indicators maintained well above regulatory requirements despite growth in risk-weighted exposures.
Government-backed housing initiatives, including subsidized housing finance schemes such as Mera Pakistan Mera Ghar, are expected to support growth in mortgage financing and enhance demand across partner financial institutions. Given PMRC’s refinancing mandate, continued policy focus on housing finance is expected to provide structural support to PMRC’s operational growth.
Going forward, PMRC’s ratings will remain sensitive to PMRC’s ability to sustain asset quality, maintain profitability amid funding cost pressures, effectively manage the DFI’s funding profile, and continue supporting growth in housing finance.
For further information on this rating announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Government Supported Entities
https://docs.vis.com.pk/docs/Meth-GSEs202007.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf