JCR-VIS Reaffirms Ratings of Silk Bank Limited

Karachi: JCR-VIS has reaffirmed the entity ratings of Silk Bank Limited (SBL) at ‘A-/A-2’ (Single A Minus/A-Two). Due to unsubscribed rights issue of Rs. 2.5b pertaining to Bank Muscat, previously a major shareholder in the bank, Capital Adequacy Ratio (CAR) of SBL has remained below the international benchmark for commercial banks.

The management is in the process of finalizing a recapitalization strategy, which is planned to materialize within 2011 and would enable the bank to meet at least the international benchmark for capital adequacy. Furthermore, the management is also making efforts to address other operational issues, progress against which will continue to be tracked by JCR-VIS.

In view of the above, ratings of the bank continue to be placed under ‘Rating-Watch Developing’ status.

For further information on this rating announcement, please contact Ms. Sabeen Saleem (Ext: 510) or Ms. Sobia Maqbool, CFA (Ext. 506) at 35311861-70 or fax to 35311873.

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