Lahore, March 11, 2016 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the long-term entity rating of MCB-Arif Habib Savings and Investments Limited (MCBAH) at “AA-“(Double A Minus) and short-term rating at “A1+” (A One Plus). These ratings denote very strong capacity for timely payment of financial commitments.
The ratings reflect MCBAH’s well-maintained franchise augmenting its relative positioning in a competitive market. A well-diversified fund slate along with a consistent growth in AUMs bodes well for the company’s revenue stream. The increased contribution of retail investors benefitting through the company’s iconic message ‘Bachat Ka Doosra Naam’ helps in providing sustainability to the core income.
The company’s experienced management and requisite systems are well placed to tap the growth opportunities in the mutual fund industry. Well guided TORs and prudent investment framework provide comfort against the management’s plan to supplement company’s income through government securities investments. Sustained improvement in profitability lends more than adequate support to coverage’s. The rating incorporates MCBAH’s association with two prominent business conglomerates of Pakistan – particularly a leading bank, MCB Bank Limited.
The ratings are dependent on the company’s ability to sustain its market standing by capitalizing on the self and group operating platform. Meanwhile, stability of the quality human resource, along with rationalization of the fund slate, would remain important. Achieving continuity in competitive fund performance is critical to ensure sustainability in the fee revenue.
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