Karachi, March 6, 2015: JCR-VIS Credit Rating Company Limited (JCR-VIS) has revised the Management Quality Rating of Pak Oman Asset Management Company Limited from ‘AM3-’ (AM- Three Minus) to ‘AM4+’ (AM- Four Plus). Rating Watch- Developing status assigned to the rating has been removed. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on December 31, 2014.
Pending merger with KASB Funds Limited, the company had been operating with considerable gaps in the management team. Performance of funds under management has remained weak in relation to peers while financial strength of the AMC itself has reduced significantly on account of equity erosion.
The merger process has recently been called off and as per management, sponsors are in the process of injecting equity which will allow the company to meet minimum capital requirement. Following this, vacancies in the management team will be filled. JCR-VIS will continue to monitor developments and will review rating once progress is noted as regards the above.
For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 604) at 021-35311861 - 70 or fax to 021-35311873.
Jamal Abbas Zaidi
Applicable Rating Criteria: Mutual Fund Rating - December 2006
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