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Karachi, June 29, 2012 (PPI-OT): JCR-VIS Credit Rating Company Limited has maintained the entity ratings of Security Investment Bank Limited (SIBL) at ‘A/A-2’ (Single A/A-Two).
Ratings take into account the challenging operating environment for secondary market borrowers in the backdrop of weak macroeconomic conditions. With limited market access to low-cost funding, operating margins of secondary market borrowers have reduced over time. In view of this, Outlook on the assigned rating has been revised to ‘Negative’.
Financing portfolio more than doubled by end-2011; though, adequate liquidity cushion is available against outstanding borrowings and deposits. Borrowings of the entity are secured against government securities. Risk of future losses emanating from exposure of the bank to market risk arising from volatility in share prices has significantly reduced over time with decline in exposure against listed shares.
For more information, contact:
Mr. Javed Callea
Advisor
JCR-VIS Credit Rating Company Limited
Tel: +9221 35311861 (10 lines) (Ext: 501)
Fax: +9221 35311872-3
E mail: javed.callea@jcrvis.com.pk