Press Release

JCR-VIS reaffirms Entity Rating of Pak Oman Microfinance Bank Limited at BBB+/A-3

Karachi, April 30, 2009: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of Pak Oman Microfinance Bank Limited (POM) at ‘BBB+/A-3’ (Triple B Plus / A-Three). The ratings will continue to be under ‘Rating Watch – Negative Status’ on account of net equity of POM being below the minimum capital requirement of Rs. 500m, as prescribed by the State Bank of Pakistan, due to losses accumulated since inception. The major sponsors, namely Sultanate of Oman, have indicated their plan to inject equity to meet the minimum paid-up capital requirement (net of losses) of Rs. 500m in the ongoing year.

While POM has been unable to meet disbursement and revenue related targets, focus on cost control has allowed the bank to post a lower than budgeted loss. A clear deposit mobilization strategy has yet to emerge and diversification in sources and placement of funds needs to be improved.

There have been delays in implementation of the IT system, which is now expected to be completed by year-end 2009. Having a sound IT system is necessary for instituting effective controls and monitoring mechanisms, which are critical before growth momentum picks up.

For further information on this rating announcement, please contact Syed Ziauddin Ahmed (Ext: 508) or Mr. Zia Usmani (Ext: 507) at 5311861-70 or fax to 5311873.



Safdar Kazi
Director

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