Press Release

JCR-VIS Reviews and Reaffirms Entity Ratings of U Microfinance Bank Limited

Karachi, September 29, 2017: JCR-VIS Credit Rating Company Limited (JCR-VIS) has performed the mid-year review and reaffirmed the entity ratings of ‘A-/A-2’ (Single A Minus/A-Two) assigned to U Microfinance Bank Limited (UMBL). Outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on April 28, 2017.

During the period under review, UMBL has significantly increased its gross loan portfolio, number of active clients and average loan size. These have, however, had an effect on their net infection level which increased to 0.8% (FY16: 0.3%) and liquid assets as a proportion of deposits & borrowings which was lower at 40% (FY16: 49%) during the period ending June 2017. Going forward, direction of the above two indicators may have an impact on the rating.

For further information on this rating announcement, please contact the undersigned (Ext: 201) at 021-35311861-70 or fax to 021-35311872-3.

Javed Callea

Applicable rating criterion: Microfinance Institutions (May 2016)

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited 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.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.VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings.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 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.

JCR-VIS Credit Rating Company Limited