Credit Ratings

PACRA upgrades Entity & Instrument Ratings of Bank AL Habib Limited.

Alhamdulillah, Pakistan Credit Rating Agency Limited (PACRA) has upgraded the Bank’s long term entity rating at AAA (Triple A). These ratings denote a lowest expectation of credit risk, indicate exceptionally strong capacity for timely payment of financial commitments. The short term rating of the Bank has been maintained at A1+ (A one plus). The ratings of our unsecured, subordinated TFCs have also been upgraded at AA+ (Double A plus) for TFC-2018, and AA (Double A) for TFC-2017 (perpetual).

The ratings reflect BAHL’s strong performance, exceptional asset quality and healthy financial profile emanating from a strong equity base. The Bank’s business strategy derives strength from its strong positioning in niche market-trade finance. The ratings draw comfort from the Bank’s experienced management team, prudent risk management policies and deep rooted relationship with clients-borrowers as well as depositors. The ratings incorporate the Bank’s ability to capitalize on its branch network, expansion of deposit base via product innovation and diversification of advances portfolio by establishing relations with business entities in various sectors.

Notably, the Bank’s deposit emanate from a wide client base, with a major proportion from individuals. Pakistan’s banking landscape- particularly for established banks like BAHL- is experiencing high competition and requires continued dynamism to retain the existing market position. Meanwhile, a meaningful representation in the bigger financial services spectrum, along with effective execution of the management’s initiative to further strengthen its operational infrastructure and market positioning is important.