Press Release

JCR-VIS Reviews and Reaffirms Entity Ratings of U Microfinance Bank Limited

Karachi, September 29, 2017: JCR-VIS Credit Rating Company Limited (JCR-VIS) has performed the mid-year review and reaffirmed the entity ratings of ‘A-/A-2’ (Single A Minus/A-Two) assigned to U Microfinance Bank Limited (UMBL). Outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on April 28, 2017.

During the period under review, UMBL has significantly increased its gross loan portfolio, number of active clients and average loan size. These have, however, had an effect on their net infection level which increased to 0.8% (FY16: 0.3%) and liquid assets as a proportion of deposits & borrowings which was lower at 40% (FY16: 49%) during the period ending June 2017. Going forward, direction of the above two indicators may have an impact on the rating.

For further information on this rating announcement, please contact the undersigned (Ext: 201) at 021-35311861-70 or fax to 021-35311872-3.

Javed Callea
Advisor

Applicable rating criterion: Microfinance Institutions (May 2016)
http://jcrvis.com.pk/kc-meth.aspx/

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