Press Release

VIS Reaffirms Entity Ratings of First Credit and Investment Bank Limited

Karachi, December 31, 2020: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of First Credit and Investment Bank Limited (FCIBL) at ‘A-/A-2’ (Single A Minus/A-Two). The long term rating of ‘A-’ signifies good credit quality; protection factors are strong. Risk factors may vary with possible changes in the economy. The short-term rating of ‘A-2’ signifies good certainty of timely payment. Liquidity factors and company fundamentals are sound. Access to capital markets is good. Risk factors are small. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on December 31, 2019.

The assigned ratings continue to derive strength from the strong sponsor profile comprising National Bank of Pakistan (NBP) and Water and Power Development Authority; each of these sponsors holds 30.8% shareholding in the company. The ratings also incorporate improving profitability profile of FCIBL. Overall corporate governance framework of the company is considered satisfactory. In line with best practices, one-third of the Board of Directors (BoD) comprises independent directors (including one female director).

Asset base of the company largely comprised advances and investment portfolio at end-Sep’2020. Additional liquidity generated on account of maturities in loan portfolio as well short placements (TDRs) of the company were directed towards the investment portfolio, particularly PIBs. No fresh NPLs were observed in the loan portfolio. While credit risk emanating from the financing portfolio is considered manageable, further diversification in sectoral and client-wise exposures is warranted.

With growth in liquid investment portfolio and decrease in advances portfolio, liquid assets in relation to total liabilities witnessed improvement. Overall liquidity profile is considered adequate in light of adequate liquid assets in relation to liabilities. Gearing and leverage indicators have depicted an increasing trend as additional short term borrowing was acquired to deploy funds in the investment portfolio. Maintaining leverage indicators at manageable levels is considered important from ratings perspective. Sizeable growth in topline coupled with controlled increase in expenses has translated to improvement in profitability profile of the company.

For further information on this rating announcement, please contact Mr. Narendar Shankar Lal (Ext: 203) or the undersigned (Ext: 306) at 021- 35311861-66 or email at

Faryal Ahmad Faheem
Deputy CEO

Applicable Rating Criteria: Non-Bank Financial Companies (March 2020)

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 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 2020 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited