Press Release

JCR-VIS revises ratings of Saudi Pak Commercial Bank Limited

Karachi, July 13, 2007: JCR-VIS Credit Rating Company Limited has revised ratings of Saudi Pak Commercial Bank Limited from ‘A-/A-2’ (Single A-Minus/A-Two) to ‘BBB+/A-3’ (Triple B Plus / A-Three). The previously assigned ‘Negative’ outlook on the medium to long-term rating has now been changed to ‘Stable’.

Over the last one year, the management has invested significantly in human resources and directed efforts towards strengthening the technology-end of business to improve controls and customer service. The management plans to significantly scale up its IT infrastructure over the next one year. Business growth has taken off, particularly during the last quarter of the year and profitability indicators may improve during the latter half of 2007, after posting losses in 2006 and the first quarter of 2007.

While the sponsors have recently injected further capital through a 30% rights issue taking total net worth of the bank to Rs. 5b, quality of the bank’s balance sheet is partly impaired on account of un-provided loan losses and diminution in value of certain investments, which is in-turn impacting the bank’s revenue generating capability. The sponsors are evaluating various alternatives to strengthen the institution. JCR-VIS will keenly follow developments in this regard.

For further information on this rating announcement, please contact Mr. Safdar Kazi or Ms. Sabeen Saleem at 5311861-70 or fax to 5311873.

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 2007 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