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

Alhamdollilah, Pakistan Credit Rating Agency Limited (PACRA) has maintained the Bank's long term and short term entity ratings at AA+ (Double A plus) and A1+ (A One plus), respectively. The ratings of our unsecured, subordinated TFCs have also been maintained at AA (Double A) for TFC-2016 and TFC-2018, and AA- (Double A minus) for TFC-2017 (perpetual). These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.

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 its 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 deposits 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.