Press Release

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

Karachi, December 26, 2014: JCR-VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of HBL Islamic Money Market Fund (HBL IMMF) at ‘AA(f)’ (Double A (f)). The previous rating action was announced on October 21, 2013.

Structured as a Shariah compliant money market fund, HBL IMMF can only invest in high quality short term assets that are Shariah compliant. In the absence of short term Islamic instruments, this has meant that funds largely remained parked with banks. However, approaching maturities of previously issued long term GoP Ijarah Sukuk has made these eligible instruments over time. In line with policy stipulations, the fund’s exposure to credit and market risk has remained low. HBL IMMF is however exposed to re-investment rate risk, which has heightened lately on account of the trend in policy rate.

Unit holding of the fund features sizable concentration with the largest investor being the sponsoring institution i.e. Habib Bank Limited. Notwithstanding the unit-holder concentration levels, the fund is expected to be able to meet redemptions in a timely manner, given its asset composition.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 604) at 35311861-70 (10 lines) or fax to 35311872-3.



Jamal Abbas Zaidi
Deputy CEO

Applicable Rating Criteria: Fund Stability Ratings (February 2012)

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 2014 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .