Pakistan Credit Rating Agency updates Ratings of Albaraka Bank Limited; Outlook is Positive

Lahore: The Pakistan Credit Rating Agency (PACRA) has maintained the long-term entity rating of AlBaraka Bank (Pakistan) Limited (ABPL) at “A” (Single A), while its short-term rating has been upgraded to “A1″ (A One). Moreover, a “Positive” outlook is assigned to the ratings. These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.

The ratings reflect AlBaraka Bank’s association with a strong Middle Eastern banking group – AlBaraka Banking Group. The ratings incorporate the impact of positive synergies emanating from the recent merger (between Emirates Global Islamic Bank and Pakistan branches of AlBaraka Bank) in terms of common operating platform, improved profile, and extended market outreach. While swiftly progressing the integration process, the management is well geared to benefit from the expanded franchise by implementing a sound business plan.

The ratings are assigned a positive outlook recognizing the benefits to accrue from improved ownership structure and implementation of the bank’s growth strategy. However, the management’s ability to establish profitable business while restraining high cost structure is challenging. The efficacy of the risk management framework aimed at improving the overall asset quality of the bank, which is currently constrained, remains important.

For more information, contact:
Hammad Rashid
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