Press Release

JCR-VIS upgrades short-term rating of Faysal Bank Limited to A-1+

Karachi, February 27, 2006: JCR-VIS Credit Rating Company Limited has upgraded the short-term rating of Faysal bank Limited (FBL) to A-1+ (A-One Plus). The medium to long-term rating has been maintained at AA (Double A) with a ‘Stable’ outlook.

The upgrade incorporates the bank’s continuing growth while maintaining high level of capitalization and improved liquidity position. The bank’s risk adjusted returns continue to be amongst the highest in the sector. Further, FBL has improved its asset quality while gradually shifting its focus to core banking assets over the years which is reflective in finance income constituting a larger proportion of earnings during 2005. The privatization of National Investment Unit Trust will also have a significant positive impact on tier-1 capital and liquidity position of the bank.

The growth in assets during the last two years has largely been funded through institutional borrowings resulting in higher concentration in deposits. This has been an industry wide trend particularly in the small and medium sized banks. The management’s plan to expand branch network is likely to address the issue and allow FBL to develop a core and stable deposit base over the medium to long-term.

For further information on this rating announcement, please contact Mr. Safdar Kazi (Ext: 221) or Ms. Sabeen Saleem (Ext: 222) at 5671822/5671833/5680996 or fax to 5681105/5671600.



Faheem Ahmad
President & CEO

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 2006 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .