Press Release

JCR-VIS upgrades NPO Governance Rating of The Citizens Foundation (TCF)

Karachi, October 12, 2018: JCR-VIS Credit Rating Company Limited (JCR-VIS) has upgraded Non-Profit Organization Governance Rating of The Citizens Foundation (TCF) to ‘GR-9+’ (GR-Nine Plus) from ‘GR-9’ (GR-Nine). On a scale from 1 to 10, rating of GR 9 and above reflects a ‘Very High Level of Governance’.Previous rating action was announced on February 24, 2016.

NPO governance ratings are based on a composite evaluation of the level of regulatory compliance, mission & program strength, governing body, executive management, utilization of funds & transparency, self-regulation and stakeholders’ relations. Commitment of the governing body and executive management are reflected by the significant growth in number of schools with over 220,000 enrolled students.

The assigned rating by JCR-VIS to TCF incorporates focus on quality education in line with its mission and efficiency in fund utilization. Rating also reflects on the governance infrastructure in place at the organization with effectively functioning board and board committees, strong focus on transparency and adequate internal control framework. Support structure is also being continuously upgraded by bringing in professional management and the implementation of more sophisticated systems and procedures.

Given that a large chunk of TCF’s network comprised primary schools, management focused on addition of secondary school units during 2017. Moreover, strong focus on qualification & training of teachers, academic result achieved by students and initiatives such as Curriculum Development and Learning Management System was also emphasized for improving quality of education.

Change in ratings also incorporate growing quantum of donations with majority of donations being generated through repeat donors. As a result, financial strength of TCF is considered sound with overheads remaining within internal benchmark of 10% of operating expenses. Funds generated through donations have grown in line with increasing expenses and expansion in operation.

For further information on this rating announcement, please contact the undersigned (Ext: 207) or Ms. Muniba Khan (Ext: 214) at (+92-21) 35311861-70 (10 lines) or fax to (+92-21) 35311872-73.

Jamal Abbas Zaidi

Applicable Rating Criteria: Non-Profit Organizations (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 2018 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