Press Release

JCR-VIS places ratings of Habib Bank Limited on ‘Rating Watch-Negative’ Status
 

Karachi, August 31, 2017: JCR-VIS Credit Rating Company Limited has placed the ‘AAA/A-1+’ (Triple A/A-One Plus) entity ratings of Habib Bank Limited (HBL) and ‘AAA’ (Triple A) rating assigned to Basel 3 compliant Tier 2 TFC on ‘Rating Watch-Negative’ status. Previous rating action was announced on June 30, 2017.
Rating action emanates from the regulatory action on the New York branch of HBL by the New York State Department of Financial Services whereby the regulator has issued a Notice of Hearing to initiate the process of a departmental hearing wherein it seeks to impose a penalty of up to $629.625m on the Bank. The Bank intends to contest the penalty in scheduled administrative hearings and, if necessary, in the court of law in the United States. However, pending any legal or regulatory outcome, JCR-VIS will closely monitor developments and may adjust ratings accordingly.
Majority owned by Aga Khan Fund for Economic Development, HBL is the largest commercial bank in the country with a market share of around 14% in domestic deposits.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 201) at 021-35311861-71 or fax to 021-35311872-3.


Faryal Ahmad Faheem
Deputy CEO

Applicable rating criterion: Commercial Banks Methodology - November 2015
http://www.jcrvis.com.pk/Images/Meth-CommercialBanks201511.pdf

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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 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