Press Release

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

Karachi, May 20, 2010: 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’.

First National Bank Modaraba (FNBM) is managed by National Bank Modaraba Management Company Limited which is a wholly owned subsidiary of National Bank of Pakistan (NBP). The implicit support from NBP – the country’s largest and government owned bank – remains a key rating factor. Accordingly, the modaraba’s inherent access to NBP for financing needs provides leverage in mobilizing funds.

Considering the size of the balance sheet, existing equity base is a hindrance in prospects for growth. Cognizant of the situation, a capital injection has been proposed. Till further capital is injected, new lending activities will remain restricted. Profitability and portfolio quality trends will be closely monitored on an ongoing basis.

For further information on this rating announcement, please contact Mr. Javed Callea at 021-35311861 (Ext: 501) or Mr. Maimoon Rasheed at 042-36610681 or fax to 021-35311873.

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 2010 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