Japan Credit Rating-Vital Information Services Maintains Entity Ratings of First Credit and Investment Bank Limited
Karachi: JCR-VIS Credit Rating Company Limited (JCR-VIS) has maintained the entity ratings of First Credit and Investment Bank Limited (FCIBL) at ‘A-/A-2’ (Single A Minus/A-Two).
In FY11, equity of the institution has experienced erosion on account of provisions created against non-performing assets. The quantum of net high risk assets is still sizeable and further provisions against some of these assets, in line with NBFCs regulations, may need to be created in a phased manner. Outlook on the assigned rating has been revised from ‘Stable’ to ‘Negative’.
Ratings draw comfort from the ownership structure of FCIBL, with National Bank of Pakistan and WAPDA holding 30.77% shares each. Funding sources of the company include bank lines and Certificates of Deposits, mobilized largely from related parties.
Of the total borrowings, about one-fourth are secured against government securities. The company carries sufficient liquidity on books with investment in government paper and placements with financial institutions providing adequate coverage against outstanding borrowings.
For more information, contact:
Mr. Javed Callea
JCR-VIS Credit Rating Company Limited
Tel: +9221 35311861 (10 lines) (Ext: 501)
Fax: +9221 35311872-3
E mail: email@example.com