JCR-VIS Credit Rating Company Ltd has upgraded the medium to long term entity ratings of Samba Bank Limited (SBL) from ‘A+ to AA-’ (A Plus to AA minus) and reaffirmed its short term rating at ‘A-1’ (A-One).
The outlook on the assigned ratings is ‘Stable’ whereas these short and long term ratings of the bank denote high credit quality with adequate protection factor and high certainty for timely payments to all financial commitment owing to strong liquidity position.
The improvement in the rating is a testament to SBL’s overall financial performance, which continues to improve with growth in its Consumer Banking, Corporate & Investment Banking, and Treasury businesses.
PACRA upgrades Allied Bank’s ratings
PACRA has upgraded the long-term ratings of Allied Bank Limited to “AA+” (Double A plus) from previous Rating of double A or “AA”.
The short-term rating of the bank is already at the highest level of “A1+” (A One plus). The rating of the unsecured, listed and subordinated TFC II (Rs 3,000mln) has been upgraded to “AA” (Double A) from previous rating: “AA-”.
The ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments. These reflect demonstrated efficacy of ABL’s strategy aimed at ensuring consistent profitability without compromising quality of other key variables.
The bank remains focused on strengthening its infrastructure and control environment – pre-requisites to withstand increasingly tough and competitive operating environment in the country. The ratings also recognize the management’s concerted efforts in sustaining the sound asset quality in the wake of subdued credit environment – fortifying the bank’s relative standing.
The ratings are dependent on the bank’s ability to cement its relative positioning in the peer universe. At the same time, cohesiveness and stability in the management team would ensure sustainability of the improving trend.