Press Release

JCR-VIS upgrades ratings of Saudi Pak Commercial Bank Ltd to A / A-2 (Single A / A-Two)

Karachi, December 30, 2005: JCR-VIS Credit Rating Company Limited has upgraded the entity rating of Saudi Pak Commercial Bank Limited (SPCBL) from BBB / A-2 (Triple B / A-Two) to A / A-2 (Single A / A-Two) with ‘Stable’ outlook.

The rating agency has incorporated the impact of increased shareholding of Saudi Pak Industrial and Agricultural Investment Company (Pvt.) Limited (SAPICO) in SPCBL from 54% to around 70% during the last 9 months. SAPICO is jointly owned by the Government of Pakistan and Kingdom of Saudi Arabia and the increased shareholding reflects the strong degree of sponsor support to the commercial bank. Further, the increase in equity through a 50% right issue has also improved the capitalization level of the bank with capital adequacy ratio exceeding 15%. The increase in the minimum paid-up-capital requirement for commercial banks has also improved the risk profile of the overall commercial banking sector. JCR-VIS believes that the sponsors of SPCBL are keen to maintain a high level of capitalization and the bank will meet the minimum paid-up-capital requirement of Rs. 6b before the stipulated time.

The bank had also initiated a team building effort during the year with a change in top management and fresh inductions at all levels. These measures have resulted in an improvement in policies, controls and risk management. Further the management has developed a strategic plan to make SPCBL a significant player in the banking sector. Its primary focus would be to mobilize and maintain core deposit base and improve the quality of its advances portfolio.

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 2005 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .