Press Release

JCR-VIS upgrades the ratings of The Bank of Khyber to BBB+/A-2

Karachi, February 15, 2007: JCR-VIS Credit Rating Company Limited has upgraded the ratings of The Bank of Khyber (BoK) to BBB+/A-2 (Triple B Plus/ A- two). The outlook on the rating is ‘Stable’. The rating agency has noted the settlement of a long standing overdue which will significantly improve asset quality indicators and likely result in reversal of provisions in the coming periods.

The rating agency has also noted the forthcoming right issue which will double its paid-up-capital allowing it to be compliant with the minimum paid-up-capital requirement till 2008. This will also allow the bank significant capacity to pursue active business growth and increase risk assets. The rights issue will result in the dilution of the Government of North Western Frontier Province shareholding in the bank to 51%, resulting in re-constitution of the board, the impact of which will be monitored in the coming periods.

The bank continues to face increased challenge from peer banks that have significantly enhanced branch network and enhanced penetration in the NWFP. The controls and risk management framework of the bank requires upgrade for which management is reviewing its manuals and evaluating core banking management information systems in the market. The bank is also in the process of expanding human resources at all levels which is expected to continue over the next two years.

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 2007 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .