JCR-VIS Credit Rating Company Limited
(JCR-VIS) had earlier revised the outlook on the ratings
of the TFC and the Sukuks of New Allied Electronics
Industries (Pvt.) Limited (NAEIL) to Negative from
Stable. NAEIL, being operative in an import based
segment in the industry, faces considerable challenges
in the current macroeconomic conditions with the rupee
having depreciated considerably against the dollar.
JCR-VIS believes that under the current circumstances,
the expected dip in the sales of NAEIL will also cause
the profitability and liquidity indicators of the
company to remain significantly constrained.
JCR-VIS has, therefore, downgraded
the medium-to-long term ratings of the TFC of Rs. 900m,
Sukuk of Rs. 600m and Sukuk of Rs. 750m to BBB+ (Triple
B plus), BBB+ (Triple B plus) and A- (A minus)
respectively. The outlook on the ratings remains
Negative.
KASB Capital Limited
Entity: A+/A-1 on Rating Watch-PositiveJCR-VIS
Assigns Entity Ratings of A+/A-1 to KASB Capital Limited
JCR-VIS Credit Rating Company Limited
has assigned entity ratings of A+/A-1 (Single A Plus /
A-One) to KASB Capital Limited (KCL).
Principal activities of the company
include investment banking, brokerage, asset management
and interests in principal investments / private equity.
The company has been set up with a large capital base
vis-à-vis regulatory requirement for investment banks
locally, and operations are funded entirely by equity.
It acts as the holding company of the interests of the
sponsors in the asset management, brokerage and leasing
sectors. With the exception of the brokerage and asset
management arm, the other subsidiaries are relatively
young and revenue streams thereon may take time to
develop. Ratings take into account the small exposure in
capital markets vis-à-vis the own equity of the
institution and the vision and quality of senior
management team.
The assigned ratings have been placed
under Rating Watch-Positive status in view of the
positive implications arising from the proposed merger
with KASB Bank Limited and Atlas Bank Limited,
regulatory approvals for which are under process.
Arif Habib Bank Limited
Entity: A/A-2 on Rating Watch-DevelopingJCR-VIS
places the A/A-2 ratings assigned to Arif Habib Bank
Limited (formerly Arif Habib Rupali Bank Limited) on
Rating Watch-Developing
JCR-VIS Credit Rating Company Limited
has placed the A/A-2 (Single A / A-Two) ratings assigned
to Arif Habib Bank Limited (AHBL) (formerly Arif Habib
Rupali Bank Limited) on Rating Watch-Developing.
The rating action takes into account
negotiations regarding acquisition of substantial stake
in the bank by a major consortium. Outcome of these
negotiations may have implications for shareholding
structure and management control, which will be
incorporated in the ratings once the deal has been
finalized.
