Press Release

Entity Ratings of First National Bank Modaraba

Karachi, May 03, 2017: JCR-VIS Credit Rating Company Limited (JCR-VIS) has placed entity ratings of ‘BBB+/A-3’ (Triple B Plus/A-Three) assigned to First National Bank Modaraba (FNBM) on ‘Rating Watch- Negative’ in view of Board's decision to cease the lending operations of the Modaraba.

Over the last five years, equity base of FNBM has eroded significantly on account of additional provisioning taken due to increasing infection and depleting financing portfolio leading to higher losses. In view of this, financial risk profile of the modaraba has weakened. The company has recently announced to cease its lending operations while deposit taking operations were ceased earlier last year. The outstanding liabilities of the modaraba are only due to its parent NBP. Future course of the company is expected to become visible in due time. Meanwhile, the focus of the management is expected to remain mainly on recovery of non performing finances.

For further information on this rating announcement, please contact the undersigned at 021-35311861-70 (Ext: 234) or Mr. Waqas Munir, FRM at 042-35723411-13 (Ext: 8010).

Javed Callea
Applicable Rating Criteria: Non-Bank Financial Companies (March, 2005)

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.

JCR-VIS Credit Rating Company Limited