Press Release

JCR-VIS upgrades ratings of United Bank Limited

Karachi, June 20, 2005: JCR-VIS Credit Rating Company Limited has upgraded the ratings of United Bank Limited (UBL) from A+ (Single A Plus) to AA (Double A). Outlook on ratings is ‘Stable’. Short-term ratings have been reaffirmed at A-1+ (A-One Plus).

JCR-VIS believes that UBL’s privatization in 2002 has marked a successful transition for the bank which is now well-positioned to leverage its key strengths i.e. its countrywide outreach and access to a large, retail deposit base. The efforts of the bank’s management both prior to its privatization and subsequently, and the strategic direction provided to the bank by its shareholders, are now reflecting positively on all indicators of financial strength. UBL’s financial health is likely to translate into improved earnings prospects for the bank going forward.

JCR-VIS places significant emphasis on the absolute rupee value of an institution’s core deposit base and the size of its equity in its credit ratings. Despite tremendous growth in the banking sector, UBL has maintained its market position with its share of banking sector deposits inching up from 8.8% to 9.1%. Development of the bank’s technology framework is also likely to continue over the next few periods, which is likely to bring about improved efficiency and enable better risk management.

JCR-VIS has also upgraded the ratings of the two TFC issues of the bank from ‘A’ (Single A) to AA- (Double A Minus).

For further information on this rating announcement, please contact the undersigned at (Ext: 221) 5671822/5671833/5680996 or fax to 5681105/5671600.



Safdar Kazi
Senior Vice President

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 .