Press Release

VIS Update on Ratings of FINCA Microfinance Bank Limited

Karachi, April 30, 2024: VIS Credit Rating Company Limited has placed the outstanding ratings of FINCA Microfinance Bank (‘FINCA mfb’ or the ‘Bank’) at ‘A-/A-2’ (Single A Minus/A-Two) on ‘Rating Watch- Developing’ status. The previous rating action was announced on December 16, 2022.

The Bank is currently majority owned (86.4%) by FINCA Microfinance Cooperatief U.A., which has international operations. In December 2023, State Bank of Pakistan (SBP) has granted an approval to initiate due diligence proceedings for the acquisition of the Bank which is reported to be at an advance stage. The financial statements/information of the Bank have not been available since September 2022. The assigned rating, therefore, reflects the position of the Bank as of the last available financial information. The Bank requires recapitalization and operational direction, these would be assessed once process of acquisition is complete and the business plan from the new acquirer is available.

For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.

Applicable Rating Criteria:
Micro-Finance Banks
https://docs.vis.com.pk/docs/MicroFinance-Oct-2023.pdf

VIS 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 2024 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .