Press Release
JCR-VIS Reaffirms Corporate Governance Rating of Allied Bank Limited at CGR-8+
Karachi, October 17, 2011: JCR-VIS Credit Rating Company Limited has reaffirmed the corporate governance rating of Allied Bank Limited (ABL) at CGR-8+, denoting ‘high level of corporate governance’. This rating is based on a scale ranging from CGR-1 (lowest) to CGR-10 (highest).
Corporate governance ratings are based on evaluation of key governance areas of the rated institution, which include regulatory compliance; board oversight; management profile; self-regulation; financial transparency and relationship with stakeholders. The rating takes into consideration the continued commitment of the board and management of the bank to maintain a sound governance framework.
While areas like regulatory compliance, management profile, financial transparency and relationship with stakeholders, depict strength, concrete steps have been taken to improve board oversight function. This includes realignment and reconstitution of certain board-level committees in the ongoing year for improving their effectiveness. The additional delegation of responsibility to the management team is a positive sign; further progress in this regard is needed to augment the governance structure. On the self-regulation front, developments are ongoing in the area of Information Technology and overall control environment of the bank. Timely implementation of these initiatives, particularly on the systems side, is expected to strengthen the operational framework of the bank.
For further information on this rating announcement, please contact the undersigned (Ext: 501) or Ms. Sabeen Saleem (Ext: 510) at 35311861-70 (10 lines) or fax to 35311872-73.
Javed Callea
Advisor
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 2011 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .