Pakistan Credit Rating Agency maintains Stability Rating of Atlas Islamic Income Fund

Lahore, January 23, 2013 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the stability rating of Atlas Islamic Income Fund (AIIF) at ‘AA- (f)’ (Double A Minus ; fund rating), an open-end Shariah compliant income fund. The fund’s rating denotes a very strong capacity to manage relative stability in returns and very low exposure to risks.

The rating reflects the fund’s objective to earn a reasonable rate of return by investing in a diversified portfolio of liquid and high quality Islamic income investments while ensuring long-term preservation of capital.

The rating reflects strong credit quality and a robust liquidity profile of the fund emanating from the asset mix of the fund comprising sizeable investment in GOP Ijara Sukuks (65%), at end Sep-12. While the remaining funds are placed with high rated Islamic banks (34%). Additionally, the rating incorporates the fund’s low exposure to interest rate volatility as the portfolio duration is 91 days. However, the unit holding pattern remains highly concentrated with the top10 investors representing 84% of the fund’s assets.

The rating is dependent upon maintaining around 50% exposure in GoP Ijara Sukuk, with a portfolio duration of less than 180 days. The remaining assets must be in the form of bank placements – deposits and TDRs predominately amongst Islamic institutions with high ratings. Any change in the fund’s credit quality impacting its asset-mix and/or exposure to interest rate risk, would have downward implication for the rating.

For more information, contact:
Hammad Rashid
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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