Press Release

VIS Harmonizes Ratings of Tier-II Instruments of Khushhali Microfinance Bank Limited

Karachi, August 18, 2023: VIS Credit Rating Company Limited has issued a new Rating Scale https://docs.vis.com.pk/docs/VISRatingScales.pdf for hybrid Tier-1 and Tier-2 capital instruments issued by Banks, under Basel III guidelines as implemented by SBP. The rating scale captures the peculiar characteristics of the hybrid instruments in relation to their conversion/write down features. Accordingly, the ratings of outstanding Tier-2, TFC-1 and TFC-2 of Khushhali Microfinance Bank Limited (KMBL) have been harmonized at ‘B’ (Single B). Assigned instrument rating of ‘B’ denotes that payments are not being made as per original schedule. Future performance is less likely. Outlook on the instrument ratings has been placed on ‘Rating Watch-Negative’. Previous rating action was announced on April 28, 2023.

For further information on this rating announcement, please contact Ms. Maham Qasim (042-35723411-13, Ext. 8005) and/or the undersigned at 021-35311861-64 (Ext. 207) or email at info@vis.com.pk.

Sara Ahmed
Director


Applicable rating criterion:

Micro-finance Banks (June 2019)
https://docs.vis.com.pk/docs/Micro%20Finance%20201906.pdf

Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf

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 2023 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .