Press Release

JCR-VIS reaffirms entity ratings of First National Bank Modaraba at A+/A-1

Karachi, March 24, 2009: JCR-VIS Credit Rating Company Limited has reaffirmed the entity ratings of First National Bank Modaraba (FNBM) at ‘A+/A-1’ (Single A Plus / A-One). Outlook on the medium to long term rating is ‘Stable’.

National Bank Modaraba Management Company is a wholly owned subsidiary of National Bank of Pakistan (NBP). With the weakening macroeconomic indicators, secondary market borrowers are finding it exceedingly challenging to borrow funds from the market at attractive rates, the shortage of which has narrowed their spreads. FNBM had plans to double the paid up capital to Rs. 500m in the outgoing year, however the rights issue which would have lowered the debt leverage, has been deferred for the first half of FY10. Although the current ratio of the modaraba slipped below 1x by the end of 1Q09, the modaraba enjoys significant market confidence and has strong access to external funds.

For further information on this rating announcement, please contact Mr. Ziauddin Ahmed (Ext: 508) or Ms. Sobia Maqbool (Ext: 506) at 5311861–70 or fax to 5311873.

Faheem Ahmad
President & CEO

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 2009 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