Press Release

JCR-VIS revisits ratings of Silkbank Limited
 

Karachi, February 25, 2011: JCR-VIS Credit Rating Company Limited has revisited the ratings of Silkbank Limited. The bank had met minimum paid up capital requirement of Rs. 6b by June 2010. However, the minimum capital requirement of Rs. 7b for December 2010 has not been met due to unsubscribed rights issue as Bank Muscat, a sponsor shareholder, who had approved issuance of the rights could not subscribe to their part of rights shares due to regulatory constraints. Consequently, capital adequacy is also expected to fall behind regulatory requirements.

The board and management of SBL are considering various options for recapitalization of the bank in addition to enhancing efforts at efficiency and recovery from bad assets. While the entity ratings of the bank have been maintained at ‘A-/A-2’ (Single A Minus/A-Two), the Rating Watch status has been changed from ‘Positive’ to ‘Developing’. Ratings will be reviewed shortly.

For further information on this rating announcement, please contact Mr. Javed Callea or Ms. Sobia Maqbool, CFA (Ext: 501/506) at 35311861-70 or fax to 35311873.



Jamal Abbas Zaidi
Advisor

________________________________________________________________________________________________________________________________
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 2011 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