Press Release

JCR-VIS Assigns Positive Outlook to Ratings of Kashf Foundation

Karachi, March 30, 2015: JCR-VIS Credit Rating Company Limited has maintained the entity ratings of Kashf Foundation (KF) at ‘BBB/A-3’ (Triple B/A-Three). Outlook on the assigned ratings has been revised from ‘Stable’ to ‘Positive’. The previous rating action was announced on January 07, 2014.

In recent years, the institution has embarked upon a growth strategy while streamlining its lending methodology in response to the challenges faced by the institution. Internal control systems have been strengthened which allows prudent client selection and also mitigates the risk of over indebtedness. Various initiatives have been taken to increase the efficiency of the institution. The institution plans to further scale up its operations in the coming years along with productivity improvement and product innovation.

The Positive Outlook takes into account improved operating performance of the institution. KF has built a sizeable performing portfolio leading to enhanced income generating capacity. Asset quality of recent financings has also remained sound.
Debt to equity of the institution is currently high with the current level of equity having limited capacity to absorb losses. With improved internal capital generation, the institution is however gradually building its equity base. Sustainability in operational performance along with maintaining asset quality intact is considered critical to maintain positive momentum in internal capital generation. Positive rating action may be triggered once the institution is able to achieve capital structure commensurate with higher ratings level, while maintaining other operational indicators.

For further information on this rating announcement, please contact Mr. Javed Callea at 021-35311861-70 (10 lines) or Mr. Maimoon Rasheed at 042-35743411-13.

Jamal Abbas Zaidi
Deputy CEO

Applicable Rating Criteria:
Micro Finance Institutions - Oct 2003 (

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 2015 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