Press Release

Ratings of Summit Bank Limited

Karachi, February 01, 2019: JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned a ‘D’ (Default) rating to the seven year listed TFC issued by Summit Bank Limited (SBL) due to non-payment of its latest markup payment on account of lock-in-clause being invoked by the State Bank of Pakistan (SBP). The TFC had previously been assigned a rating of ‘BBB- (SO)’ (Triple B Minus (Structured Obligation)) and had been placed on ‘Rating Watch-Negative’ status in view of weakening in financial profile and delay in potential merger with another Commercial Bank. This rating action was announced on 23rd November 2018. SBL has in-principle approval of SBP for extension in maturity by one year for principal payment while the Bank also plans to pay accrued mark-up in bullet form along with principal payment after obtaining required approvals.

JCR-VIS has also suspended the entity ratings of ‘BBB-/A-3’ (Triple B Minus/A-Three) assigned to SBL due to non-availability of updated information. No financial statements have been made available after the period ended March’2018. Once required information along with latest financials is made available, JCR-VIS would reassess the ratings.

For further information on this rating announcement, please contact the undersigned (Ext: 201) at (+92-21) 35311861-70 or fax to (+92-21) 35311872-3.

Jamal Abbas Zaidi
Advisor

Applicable rating criterion: Commercial Banks Methodology (March’2018)
http://jcrvis.com.pk/docs/Meth-CommercialBanks201803.pdf

Rating the Issue (Sept 2014) http://www.jcrvis.com.pk/Images/criteria_instrument.pdf

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