Press Release

JCR-VIS Reaffirms Ratings of Meezan Bank Limited at A+/A-1
 

Karachi, June 30, 2008: JCR-VIS Credit Rating Co Ltd. (JCR-VIS) has reaffirmed the medium to long-term entity rating of Meezan Bank Limited (MBL) at ‘A+’ (Single A Plus) with a ‘Stable’ outlook. Short term rating has also been reaffirmed at ‘A-1’ (A One).

MBL enjoys strong franchise in the Islamic banking segment. While entry of new market participants has raised the level of competition, there exists significant room for further growth on account of the growing share of Islamic banking. MBL has leveraged itself to take advantage of this growth potential through continued expansion in outreach. The quality of the new liability book being developed features improvement in terms of increased level of dispersion. Fresh equity injection planned for the on-going year is expected to improve capitalization levels.

The loan portfolio includes corporate, SME and consumer exposures, with strong portfolio quality maintained across all business segments, allowing the bank to generate healthy returns thereon. The increasing trend in overheads may continue on account of the planned expansion, as booking of assets and growth in revenues generally comes with a lag effect. The impact of developments in the external environment on the bank’s growth plans will be keenly monitored by JCR-VIS.

The bank has initiated the task of preparing itself for the implementation of core banking solution, Temenos T-24 and the complete roll out is expected over the next two years.

For further information on this rating announcement, please contact Mr. Safdar Kazi (Ext: 501) or Ms. Sabeen Saleem (Ext: 510) at 5311861-70 (10 Lines) or fax to 5311872-73.



Faheem Ahmad
President & CEO

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Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited (JCR-VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. JCR-VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2008 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited