Press Release

JCR-VIS Reaffirms Entity Ratings of Kashf Foundation with a Stable Outlook

Karachi, April 05, 2017: JCR-VIS Credit Rating Company Limited has reaffirmed the entity ratings of Kashf Foundation (KF) at ‘BBB+/A-3’ (Triple B Plus/A-Three). Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on March 25, 2016.
KF’s extensive experience in the microfinance sector, a sound lending methodology and internal control infrastructure remain the key rating factors. Asset quality has been maintained in an expanding portfolio, thus improving profitability and equity base. Ratings are based on continuation of this trend along with access to fresh funding.
The management is undertaking various steps to increase KF’s overall efficiency by undertaking intensive training programmes for its BDOs and upgrading the overall IT infrastructure. A robust internal control infrastructure has translated into low incremental infection, while provisioning coverage against non-performing loans (NPLs) is sufficient.
Liquid assets continue to represent around one-fourth of the total borrowings at end-1HFY17. Owing to growing equity base, leverage indicators have also improved. During 1HFY17, KF was issued the Non-Banking Finance Company license by the Securities and Exchange Commission of Pakistan.
For further information on this rating announcement, please contact Mr. Javed Callea at 021-35311861-70 (10 lines) or Mr. Maimoon Rasheed at 042-35723411-13.

Javed Callea

Applicable Rating Criteria:
Micro Finance Banks - June 2016 ( )

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 2017 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

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