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Pakistan Credit Rating Agency Maintains Ratings Of Soneri Bank Limited

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by June 22, 2012 General

Lahore, June 22, 2012 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term entity ratings of Soneri Bank Limited at “AA-” (Double A minus) and “A1+” (A one plus), respectively. These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.

The rating of unsecured, subordinated TFC issue of PKR 1,200mln has also been maintained at “A+” (Single A plus). The rating denotes a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.

The ratings reflect the revitalization being brought into the bank through a) induction of seasoned team while adding clarity to the organizational structure, b) focus on energizing its franchise value, c) development of a bank-wide integrated information system, in turn, a strong control environment, and d) expansion as well as diversification in income streams.

These initiatives are expected to hold the bank’s respective position in the peer universe that was increasingly under pressure due to deterioration in asset quality, subdued profitability, and limited system presence.

Meanwhile the management has geared up recovery efforts against existing infected portfolio.

Moreover, the bank maintains good liquidity profile and adequate risk absorption capacity. The demonstrated support of the key sponsor – Feerasta Family – to enable the bank meet its capital requirement is also a key factor.

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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