Press Release

JCR-VIS revises ratings of Saudi Pak Commercial Bank Limited to A-/A-2
 

Karachi, November 24, 2006: JCR-VIS Credit Rating Co Ltd. had revised the outlook on the rating of Saudi Pak Commercial Bank in September 2006 to ‘Negative’. This rating action had been taken in view of the observed delay in regularization/recoveries of classified advances vis-à-vis amounts earlier indicated by the bank as being recoverable within a very brief time period. A further increase in non-performing assets had been posted in the subsequent period. While sponsors had injected equity during the last quarter of 2005, the persisting weakness in asset quality indicators had continued to drag profitability indicators.

JCR-VIS was given to understand that the bank had a definite plan for addressing the issue of balance sheet impairment through recapitalization within the next few months. Although the board has approved a plan for recapitalization of the bank through issuance of right shares, the current financial position of the bank is not in line with outstanding ratings, which have consequently been revised from ‘A/A-2’ (Single A/ A-Two) to ‘A-/A-2’ (Single A Minus/ A-Two) with a ‘Negative’ outlook.

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



Safdar Kazi
Advisor

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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