Press Release

JCR-VIS Assigns Fund Stability Rating of AA+(f) to First Habib Cash Fund

Karachi, May 3, 2011: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has assigned Fund Stability Rating of ‘AA+(f)’ (Double A Plus (f)) to First Habib Cash Fund (FHCF).

FHCF is a money market fund. The rating incorporates the strong risk profile of the fund, as envisaged in the investment policy. Assets will be invested in short-term government securities, with a minimum 60% exposure to be maintained in this asset class at all times. The remaining assets may be deployed in reverse repo transactions with government securities as acceptable collateral or can be held as balances with highly rated financial institutions with minimum counterparty rating of ‘AA’. This threshold for investment, also applicable to any other exposure in the investment portfolio, translates into low credit risk for the fund. Moreover, with weighted average maturity of the investment portfolio capped at ninety days and allocation to marketable instruments, the fund has limited exposure to interest rate and liquidity risk.

At end-March 2011, FHCF had net assets of Rs. 397m, with almost 97% invested in government securities. Weighted average time to maturity of net assets was 52 days. Current unit-holder profile is concentrated and the fund may benefit from a more diversified base. However, given the liquidity profile of assets, ability of the fund to service redemptions in a timely manner is considered sound.

For further information on this rating announcement, please contact Ms. Sobia Maqbool, CFA (Ext: 506) or Ms. Sabeen Saleem, CFA (Ext: 510) at 021-35311861-70 or fax to 021-35311872-3.



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 2011 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .