Press Release

JCR-VIS Reaffirms Entity Ratings of Pak Oman Microfinance Bank Limited

Karachi, April 28, 2016: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of Pak Oman Microfinance Bank Limited (Pak Oman) at ‘BBB+/A-3’ (Triple B Plus/A-Three). Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on April 29, 2015.

Assigned ratings take into account the strong sponsor support; Pak-Oman enjoys being a subsidiary of Pak Oman Investment Company Limited and Sultanate of Oman as its major shareholders. Lending activities at Pak Oman picked pace with Net Advances reported at Rs. 358.7m (CY14: Rs. 221.0m) as of end-CY15. The quality of the assets needs to be monitored. As at end-CY15, gross infection increased to 8.9% (CY14: 1.6%) which is higher than the peer average of 3.5%. Strengthening in risk assessment function of the company would be warranted, going forward.

Capitalization indicators are reflective of significant room for growth in advances portfolio, while liquidity profile is supported by sizeable liquid assets carried on the balance sheet.

In contrast to preceding years, earnings are currently driven by both returns on investments and advances due to increased emphasis on lending. The bank posted a maiden profit for CY15; future profitability will depend on efficient management of advances and recoveries.

For further information on this rating announcement, please contact the undersigned (Ext: 508) or Mr. Javed Callea (Ext: 501) at 35311861-70 or fax to 35311873.

Mohammad Khalid Ali

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 2016 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