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.
Applicable Rating Criteria:
Micro Finance Banks - June 2016 (http://www.jcrvis.com.pk/kc-meth.aspx )
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