Press Release

JCR-VIS upgrades ratings of Saudi Pak Commercial Bank Ltd.

Karachi, June 30, 2005: JCR-VIS Credit Rating Company Limited has upgraded the entity ratings of Saudi Pak Commercial Bank Limited (SPCBL) from BBB- / A-3 (Triple B Minus / A-Three) to BBB / A-2 (Triple B / A-Two) with ‘Stable’ outlook. These ratings reflect, adequate credit quality, protection factors are reasonable and sufficient, risk factors are considered variable if changes occur in the economy.

Key drivers of the improved rating include team building efforts at the top management level and the on-going inductions to strengthen the middle management. The bank’s sponsors have subscribed to another right issue of
14% to support capitalization levels. With improved core profitability and recoveries expected during the current financial year, we expect capitalization levels to increase significantly by year-end also providing SPCBL with adequate capacity to grow further. The bank also benefits from the franchise value of the Saudi-Pak group in Pakistan which has a proven track record of credibility in the financial sector.

However, ratings remain constrained on account of the level of asset impairment being carried by the bank in relation to its loss absorption capacity. Further enhancement in risk management capabilities is required to ensure the quality of assets going forward.

For further information on this rating announcement, please contact Mr. Muhammad Ameen (Ext: 235) 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 .