Press Release

JCR-VIS Reaffirms Ratings of SilkBank Limited
 

Karachi, August 18, 2011: JCR-VIS has reaffirmed the entity ratings of SilkBank Limited (SBL) at ‘A-/A-2’ (Single A Minus/A-Two). Due to unsubscribed rights issue of Rs. 2.5b pertaining to Bank Muscat, previously a major shareholder in the bank, Capital Adequacy Ratio (CAR) of SBL has remained below the international benchmark for commercial banks. The management is in the process of finalizing a recapitalization strategy, which is planned to materialize within 2011 and would enable the bank to meet at least the international benchmark for capital adequacy. Furthermore, the management is also making efforts to address other operational issues, progress against which will continue to be tracked by JCR-VIS.

In view of the above, ratings of the bank continue to be placed under ‘Rating-Watch Developing’ status.

For further information on this rating announcement, please contact Ms. Sabeen Saleem (Ext: 510) or Ms. Sobia Maqbool, CFA (Ext. 506) at 35311861-70 or fax to 35311873.



Faheem Ahmad
President & CEO

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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