Press Release

JCR-VIS Reaffirms Fund Stability Rating of HBL Money Market Fund

Karachi, January 14, 2016: JCR-VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of HBL Money Market Fund (HBL MMF) at ‘AA(f)’ (Double A (f)). The previous rating action was announced on December 26, 2014.

The assigned rating takes into account the conservative risk appetite of the fund with exposures in any issue/issuer subject to a minimum credit rating of ‘AA’; incase of placements with NBFCs/ modaraba, only ‘AAA’ rated entities are eligible counterparties. During FY15, more than three-fourth of the fund’s assets were invested in government securities while remaining exposures were maintained with highly rated counterparties, in line with the investment policy. Asset quality is expected to be maintained, given the restrictions on credit risk that may be assumed by the fund.

Weighted average maturity of the fund’s assets has varied over the last year, while remaining within maximum policy limit. Liquidity position of the fund is considered sound reflected by short maturity profile and quality of assets. Corporate entities continue to remain the main unit holders of the fund while share of investment by retail investors have increased.

For further information on this rating announcement, please contact the undersigned (Ext: 517) or Mr. Javed Callea (Ext: 501) at 021-35311861-70 (10 lines) or fax to 021-35311873.


Jamal Abbas Zaidi
Advisor

Applicable Rating Criteria: Fund Stability Ratings (February 2012)
http://www.jcrvis.com.pk/Images/FSRMeth-201202.pdf

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