Press Release

JCR-VIS reaffirms ratings of The First MicroFinance Bank Limited

Karachi, April 28, 2006: JCR-VIS Credit Rating Company Limited has reaffirmed ratings of The First MicroFinance Bank Limited (FMBL) at ‘A+/ A-1+’ (Single A Plus / A–One Plus) with a ‘Stable’ outlook.

The rating agency has incorporated the bank’s sound capital structure, substantial liquidity vis-à-vis financial obligations and soundness of its microfinance portfolio while having reaffirmed ratings. The growth in the bank’s microfinance portfolio during the first four years of its operations has been quite measured, however the management has strengthened the bank’s infrastructure during this time. The pace of growth has increased during this year which is expected to be sustainable in the foreseeable future. Growth in the financing portfolio is also likely to favorably impact the bank’s efficiency and profitability indicators. The rating agency believes that the overall risk management and control environment has improved with up-gradation in the bank’s management information system and management capacity has been enhanced over time.

Ratings also incorporate the financial strength of, and franchise associated with the sponsors namely, Aga Khan Fund for Economic Development and International Finance Corporation. The bank has also been awarded the 2005 Financial Transparency Award by the Consultative Group for Assisting the Poor (CGAP)-an arm of the Global Trust fund managed by the World Bank - for its quality of disclosures.

For further information on this rating announcement, please contact Syed Ziauddin Ahmed (Ext: 221) or Ms. Sabeen Saleem at (Ext: 222) 5671822/5671833/5680996 or fax to 5681105/5671600.

Faheem Ahmad
President & CEO

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 2006 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