Press Release

JCR-VIS Reaffirms Entity Ratings of Pak Oman Microfinance Bank Limited

Karachi, April 29, 2011: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of Pak Oman Microfinance Bank Limited (POM) at ‘BBB+/A-3’ (Triple B Plus / A-Three). Outlook on assigned ratings is ‘Stable’.

Ratings incorporate the strong sponsor support, as also evidenced by the Rs. 251m injection in the last quarter of 2009, allowing the bank to meet minimum capital requirement (MCR) of Rs. 500m. While MCR for end-December 2011 is higher at Rs. 600m; the equity of the bank is in excess of the regulatory requirement. Further benefit of capital injection was derived in terms of increase in revenue generation, facilitating the bank to post a fully profitable year in 2010 for the first time since inception.

Lending activities have yet to pick pace. Further reduction in gross lending portfolio translated into higher infection rate in the loan portfolio. However, these losses are not considered significant in relation to loss absorption capacity of the bank. Placements with an associated concern having high credit quality comprised more than 50% of asset base. Sustainability of profitable operations in the long-term is dependent on the ability of the bank to vitalize core banking operations. Strengthening in the control environment and capacity building of the institution are considered prerequisites in this regard.

For further information on this rating announcement, please contact Ms. Sabeen Saleem, CFA (Ext: 510) or Mr. Manzoor H. Memon, ChE (Ext: 512) at 35311861-70 or fax to 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 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