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Pakistan Credit Rating Agency Limited maintains entity ratings of Apna Microfinance Bank Limited - Press Release issued by The Pakistan Credit Rating...

May 13, 2014



Pakistan Credit Rating Agency Limited maintains entity ratings of Apna Microfinance Bank Limited - Press Release issued by The Pakistan Credit Rating Agency Limited

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)

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The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term entity ratings of Apna Microfinance Bank Limited (AMBL) at "BBB" (Triple B) and "A3" (A Three), respectively. Meanwhile the outlook for the ratings remain "Positive". These ratings denote an adequate capacity for timely payment of financial commitments.

The ratings reflect the sponsors' concerted efforts to streamline the business profile of AMBL. Operational performance of the bank, though steadily improving, is yet to achieve sustainability. Although the bank is expanding its loan book, the challenge is to achieve good quality - portfolio at risk higher than sector norm.

This is also restraining consistent profitability. While the bank has complied with capital requirements for provincial level license, sponsors are making efforts to pursue a national level license. Meanwhile, AMBL intends to expand its operations in interior Sindh; key focus would be to tap potential agricultural community. However, successful materialization of its strategy, while improving bottom-line performance is yet to be seen.

The ratings carry a positive outlook recognizing potential benefits from increasing capitalization level, enhancing market share in its operating market and improvement in technological infrastructure. However, stability in key management team, along with strengthening of risk management framework and related controls are critical.

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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Source: Pakistan Press International


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