Pakistan Credit Rating Agency Limited maintains ratings of Standard Chartered Bank (Pakistan) Limited
Lahore, June 29, 2012 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the long-term rating of “AAA” (Triple A), and the short-term rating of “A1+” (A One Plus) of Standard Chartered Bank (Pakistan) Limited (SCBPL).
Meanwhile, the rating of the bank’s listed, subordinated TFCs have been maintained at “AAA” (Triple A). These ratings denote the lowest expectation of credit risk emanating from an exceptionally strong capacity for timely payment of financial commitments.
The ratings reflect SCBPL’s association with a financially sound and reputed international bank – Standard Chartered PLC. This is supplemented by SCBPL’s strategic and operational integration into the parent as the Bank continues to benefit from the technical resources and cumulative expertise developed at the Group level.
The rating recognizes the bank’s established brand equity in the domestic market (i.e. Pakistan), quality management team, and healthy spreads. In the recent years, the bank has faced the heat of subdued economic environment, wherein the quality of its assets – mainly consumer – suffered.
However, efficient deposit expansion, which is being mainly deployed in low-risk government papers, has helped in enhancing liquidity and profitability.
The ratings are dependent on the management’s ability to foster the bank’s relative positioning in the sector with prudent control over the associated risks. Meanwhile, insulating the bank from any material deterioration in asset quality, in turn, impacting its performance would remain challenging.
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