Corporate Corner: JCR-VIS revises HBL’s rating outlook to stable
The previous rating action was announced on June 29, 2018
File photo of HBL. PHOTO: REUTERS
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 2nd, 2019.
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 2nd, 2019.