Press Release

JCR-VIS places ratings of Bank of Khyber on ‘Rating Watch’

Karachi, July 11, 2005: JCR-VIS Credit Rating Company Limited has reaffirmed the ratings of the Bank of Khyber (BoK) at BBB/A-2 (Triple B/ A- two). The bank is currently owned by the government of North West Frontier Province (NWFP) to the extent of 87% and Deutsche Investitions-und Entwicklungsgesellschaft mbH (DEG) holds the remaining shares. BoK’s business is concentrated in the province of NWFP, where it has a distinct niche as a provincial bank. The planned public offer of shares will allow it to meet the minimum capital requirement and enhance its loss absorption capacity.

Although the interim management has shown improvement, continuity and stability of the management is necessary for the bank to keep pace with the growth trends in the sector. The planned offer of shares will also substantially alter the ownership pattern of the bank and cause reconstitution of the board. Ratings have currently been placed on a ‘Rating Watch’. Conclusion of the public offer of shares planned in two tranches, the appointment of permanent management and the road map for conversion to an Islamic bank will allow us to review and incorporate the impact of these developments in the ratings and inform investors accordingly.

For further information on this rating announcement, please contact Mr. Muhammad Ameen (Ext: 233) 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 .