Press Release

JCR-VIS revises outlook on Tameer Microfinance Bank Limited

Karachi, October 22, 2007: JCR-VIS Credit Rating Company Limited has revised its initial outlook on the medium to long-term rating assigned to Tameer Microfinance Bank Limited (TMBL) from Stable to Negative, while maintaining ratings at A-/A-2 (Single A Minus/A Two).

TMBL is currently the only noteworthy lender to individuals in the local urban market. Primarily on account of it being a pioneering effort in this segment, the bank has recently experienced incidence of non-performance in portfolios of key branches, constituting a significant portion of the bank’s total financing. This is likely to impact initial expectations of earnings in the last two quarters of the current year – pushing the projected timeline for breaking even further out.

Long-term estimates of sustainability may as yet remain unaffected, as the management has put in place necessary remedial measures. Improved liaison with branches, as facilitated by investment in IT systems and enhanced deployment of collection infrastructure at the head office are among the recent steps taken. Changes have also been made in the management structure and collection process of the affected branches. In addition, the bank is endeavoring to reduce its concentration in the affected areas and has already opened several branches in Punjab, while also planning to diversify its product line.

JCR-VIS will closely monitor the impact of measures taken, in terms of reinstating initial expectations of the bank’s future strength. The ‘negative’ outlook on ratings signifies the possibility of a rating review, should a definite change materialize in expectations regarding the bank’s short and long-term creditworthiness.

For further information on this rating announcement, please contact Mr. Safdar Kazi (Ext: 604) or Ms. Sabeen Saleem (Ext: 608) at 5311861-70 or fax to 5311873.



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 .