Lahore, November 15, 2012 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has assigned initial rating of ‘AA-’ (Double A minus) to the proposed listed, unsecured and subordinated fifth TFC issue of PKR 5,000mln by Bank Alfalah Limited (BAFL). This rating denotes a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.
The rating reflects BAFL’s sustained market positioning engendering performance improvement, thereby strengthening risk absorption capacity. A sizeable increase in deposits has enabled the bank to register growth in its earning assets, mainly low-risk government securities providing respite to the bank’s risk weighted capitalization.
Meanwhile, rising share of low cost deposits is expected to further improve the spreads, in turn, profitability. To maintain adequate cushion in capital adequacy vis-a-vis planned growth in advances, the management intends to issue fresh, unsecured and subordinated TFC. The rating recognizes the demonstrated support of Abu Dhabi group as a key factor.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425