Press Release

JCR-VIS revises outlook on ratings of Saudi Pak Commercial Bank Limited


Karachi, September 14, 2006: JCR-VIS Credit Rating Company Limited has revised the outlook on the medium to long-term entity rating and ‘Preliminary’ rating assigned to the proposed term finance certificates of Saudi Pak Commercial Bank Limited to ‘Negative’.

JCR-VIS has observed a delay in regularization/recoveries of classified advances vis-à-vis amounts earlier indicated by the management as being recoverable within a very brief time period. A further increase in non-performing assets has been posted in half year results. While sponsors had injected equity during the last quarter of 2005, the persisting weakness in asset quality indicators has continued to drag profitability indicators.

Ratings may remain stressed unless meaningful reduction is registered in the level of balance sheet impairment, either through recoveries or further increase in capitalization. Plans to address these issues have been devised and developments in this regard will be closely monitored.

For further information on this rating announcement, please contact Mr. Safdar Kazi (Ext: 221) or the undersigned (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