Press Release

JCR-VIS reaffirms the ratings of Meezan Bank Limited at A+/A-1
 

Karachi, June 29, 2006: JCR-VIS Credit Rating Co Ltd. (JCR-VIS) has reaffirmed the entity ratings of Meezan Bank Limited (MBL) at A+/ A-1 (Single A Plus/ Single A One) with a ‘Stable’ outlook. As the pioneer of Islamic banking in Pakistan, Meezan Bank Limited has established its niche in the local market. The bank has maintained adequate level of capitalization and the sponsors are committed to meet the capital requirement ahead of time as set by the central bank. The quality of the financing portfolio has remained sound with a low level of infection. However owing to the lack of availability of short-term shariah compliant money market instruments, liquidity management continues to be an area of concern and the bank maintains a high loan to deposit ratio.

The rating agency has noted substantial growth in bank’s deposits during the year 2005 with an increase in branch network. The bank is planning to double its branch network during the current year that would allow it to increase its outreach and access a low cost and diversified deposit base. The improvement in earnings has also allowed the bank to absorb the increase in its administrative expenses.

For further information on this rating announcement, please contact Mr. Safdar Kazi (Ext: 221) or Ms. Sabeen Saleem (Ext: 222) at 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