Karachi, December 29, 2017 (PPI-OT):JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of First Credit and Investment Bank Limited (FCIBL) at ‘A-/A-2’ (Single A Minus/A-Two). Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on December 30, 2016.
The ratings of FCIBL take into account its association with strong primary sponsors, namely, National Bank of Pakistan Limited (NBP) and Water and Power Development Authority (WAPDA), with each having a shareholding of 30.8%.
The major proportion, almost two third, of asset base consisted of short-term placements with microfinance banks and cash and bank balances at end-1QFY18. Given sound credentials of counterparties, credit risk is considered manageable. Moreover, given the size of the listed equity portfolio in relation to company’s own equity and most fixed income exposures linked to floating rates, market risk emanating from the investment portfolio is considered limited.
While major portion of balance sheet continues to be funded through equity; gearing, though remained low, increased modestly by end-1QFY18. Liquidity profile of the company draws support from sizeable liquid asset in relation to outstanding obligations; liquid assets as a proportion of outstanding borrowings increased further by end-FY17.
Currently, the bank is slightly short of the regulatory minimum equity requirement (MER) for deposit taking investment finance companies. The regulator has granted extension in meeting MER till December 31, 2017.
For more information, contact:
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi