JCR-VIS reaffirms Fund Stability Rating of Habib Bank Limited Islamic Money Market Fund

Karachi, December 26, 2014 (PPI-OT): JCR-VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of HBL Islamic Money Market Fund (HBL IMMF) at ‘AA(f)’ (Double A (f)). The previous rating action was announced on October 21, 2013.

Structured as a Shariah compliant money market fund, HBL IMMF can only invest in high quality short term assets that are Shariah compliant. In the absence of short term Islamic instruments, this has meant that funds largely remained parked with banks. However, approaching maturities of previously issued long term GoP Ijarah Sukuk has made these eligible instruments over time.

In line with policy stipulations, the fund’s exposure to credit and market risk has remained low. HBL IMMF is however exposed to re-investment rate risk, which has heightened lately on account of the trend in policy rate.

Unit holding of the fund features sizable concentration with the largest investor being the sponsoring institution i.e. Habib Bank Limited. Notwithstanding the unit-holder concentration levels, the fund is expected to be able to meet redemptions in a timely manner, given its asset composition.

For more information, contact:
Ms. Sobia Maqbool
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk

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