Press Release

VIS Assigns initial Fund Stability Rating to HBL Financial Sector Income Fund Plan-II

Karachi, March 03, 2025: VIS Credit Rating Company Limited (VIS) has assigned the Fund Stability Rating (FSR) of ‘AA- (f)’ (Double A Minus (f)) to HBL Financial Sector Income Fund Plan-II (‘HBL-FSIFP-II’ or ‘the Plan’). The medium to long-term rating of ‘AA- (f)’ indicates high degree of stability in Net Asset Value; Risk is modest but may vary slightly from time to time because of changing economic conditions.

HBL-FSIFP-II was launched in February 19, 2024, with the objective to provide income enhancement and preservation of capital by investing in prime quality financial sector TFCs/Sukuks, bank deposits, and short-term money market instruments.

The assigned rating reflects the Plan's asset quality and allocation strategy, with investments aligned with the mandates defined in the offering document. The Plan’s portfolio is predominantly composed of cash holdings. The rating also incorporates the credit quality of the Plan. Although the offering document permits investments in instruments rated investment grade and above, the rating is supported by the Plan's credit exposures, with the majority of cash deposits held in AA+ rated banks. Maintaining the Plan’s credit quality will remain critical for the assigned rating going forward.

The Plan’s weighted average time to maturity (WAM) is capped at four years as outlined in the Plan’s IPS, with the cap not applying to government securities. Market risk is assessed as minimal due to the Plan's heavy reliance on cash deposits. Client concentration is higher, while liquidity profile is considered sound.

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




Applicable Rating Criteria: Fund Stability Ratings
https://docs.vis.com.pk/docs/-FundstabilityRating.pdf

VIS Issue/Issuer 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 2025 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .