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Pakistan Credit Rating Agency assigns Stability Rating To Muslim Commercial Bank’s Islamic Income Fund

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by June 14, 2012 General

Lahore, June 14, 2012 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has assigned a stability rating of ‘AA-(f)’ (Double A Minus ; fund rating) to MCB Islamic Income Fund (MCB-IIF), an open-end Shariah compliant income fund. The fund’s rating denotes very strong capacity to manage relative stability in returns and very low exposure to risks.

The primary investment objective of the fund is to provide investors with high income and long-term capital growth by investing primarily in a diversified portfolio of Shariah compliant investment instruments. The fund has a mandate to invest only in Shariah compliant instruments and financial institutions having ‘A’ and above credit rating.

The rating reflects strong credit quality of the fund’s assets and a sound liquidity profile emanating from the current asset mix, comprising more than ~70% of the assets in GoP Ijara Sukuk at end-Mar12. The remaining portion comprises cash balance with Islamic Banks (30%) at end-Mar12. However, with substantial exposure in low-duration GoP bonds, the fund has modest exposure to interest rate volatility. The unit holding pattern is diversified, with the top10 investors representing 28% of the fund’s net assets.

The rating is dependent upon maintaining minimum of 70% exposure towards government securities with a portfolio duration of not above 1 year. The remaining funds will be placed with high good quality Islamic Banks.

For more information, contact:
Hammad Rashid
Analyst
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
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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