Press Release

JCR-VIS Upgrades Fund Stability Rating of UBL Government Securities Fund

Karachi, December 29, 2017: JCR-VIS Credit Rating Co. Ltd. (JCR-VIS) has upgraded the Fund Stability Rating of UBL Government Securities Fund (UGSF) to ‘A+(f)’ (Single A Plus(f)) from ‘A(f)’ (Single A (f)). The previous rating action was announced on December 30, 2016.

The rating upgrade reflects significant decline in duration of the fund which is now in line with JCR-VIS’s criteria for the assigned rating. Resultantly, exposure to market risk has decreased. The rating also reflects the fund’s low credit risk profile emanating from its policy to invest in avenues rated ‘AA-’ and above. Moreover, the fund shall invest a minimum 70% of assets (on monthly average basis) in sovereign instruments. Barring June’2017, fund's exposure in government securities was above 70% over FY17.

In FY17, a considerable decline has been witnessed in fund size to Rs. 3.3b (end-FY16: Rs. 14.0b). By end-November 2017, net assets decreased further to Rs. 3.0b. Unit holder concentration has declined on a timeline basis. Given the quality of assets and unit-holder profile, ability to meet redemptions in a timely manner is expected to remain strong.

For further information on this rating announcement, please contact the undersigned (Ext: 207) or Mr. Javed Callea (Ext: 201) at 35311861-70 or fax to 35311872.

Jamal Abbas Zaidi

Applicable Rating Criteria: Fund Stability Ratings (December 2017)

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