Karachi, October 5, 2016: JCR-VIS Credit Rating Company Limited has finalized the rating of ‘AA-’ (Double A Minus) assigned to the Tier 2 Sukuk issue of Meezan Bank Limited (MBL). Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on 31st August 2016.
MBL has issued a regulatory shariah compliant unsecured, subordinated privately placed Tier 2 Sukuk of Rs. 7.0b. The Sukuk is structured based on the principles of Mudaraba and will have a tenor of 10 years. Purpose of Sukuk issuance is to support the Bank in strengthening its overall capitalization levels and meet Basel III requirements.
At end-June 2016, MBL had an asset base of Rs. 571.4b and the equity of the Bank stands at Rs. 27b. Rating draws strength from the standalone financial profile of MBL reflected by its strong liquidity profile, sound asset quality indicators and increasing core earnings ensuring high certainty of timely repayments.
For further information on this rating announcement, please contact the undersigned (Ext: 234) or Mr. Mohammed Khalid Ali (Ext: 241) at 35311861-70 (10 lines) or fax to 35311873.
Applicable rating criterion: Commercial Banks Methodology - November 2015 http://www.jcrvis.com.pk/Images/Meth-CommercialBanks201511.pdf
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