Corporate Corner: JCR-VIS revises HBL’s rating outlook to stable

KARACHI: JCR-VIS Credit Rating Company Limited has reaffirmed entity ratings of Habib Bank Limited (HBL) at ‘AAA/A-1+’ (Triple A/A-One Plus). In line with JCR-VIS’s standard notching criteria, the rating of Basel 3-compliant Tier 2 TFC of HBL has been upgraded to ‘AAA’ from AA+. The outlook on all the assigned ratings has been revised to ‘stable’ from ‘negative’. The previous rating action was announced on June 29, 2018. The assigned long-term ‘AAA’ rating indicates the highest credit quality; the risk factors are negligible, being only slightly more than the risk-free government of Pakistan’s debt. The short-term rating of ‘A-1+’ indicates highest certainty of timely payment; short-term liquidity, including internal operating factors and/or access to alternative sources of funds, is outstanding. The reaffirmation of the ratings and the change in outlook to stable is driven by JCR-VIS’s assessment of improved financial performance metrics in terms of capitalisation and asset quality indicators while robust liquidity profile has largely been maintained.  

Published in The Express Tribune, January 2^nd, 2019.

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