Pakistan Credit Rating Agency assigns long-term entity rating of “BBB+” (Triple B Plus) and short-term rating of “A2” (A Two) to Waseela Microfinance Bank

Lahore, May 09, 2013 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has assigned long-term entity rating of “BBB+” (Triple B Plus) and short-term rating of “A2” (A Two) to Waseela Microfinance Bank Limited (WMBL). These ratings denote a low expectation of credit risk and an adequate capacity for timely payment of financial commitments.

The ratings reflect WMBL’s association with one of the world’s largest telecom groups – Vimpelcom – and Pakistan’s leading cellular operator – Mobilink. The ratings recognize the bank’s strong capitalization level, which lends it cushion to absorb drag of initial period of operations.

WMBL’s branchless banking service has been launched under the brand “Mobicash”. Mobicash, in establishing its market foothold including agent network, is expected to benefit from Mobilink’s widespread distribution channels and strong brand equity.

WMBL would gradually build its loan book, though starting mainly with non-collateralized loans, collateralized lending products would also be added. Given the competitive business landscape, a comprehensive strategy and a cohesive management team would be critical for success.

Meanwhile, the ratings have been assigned a Positive Outlook, keeping in view the potential of the bank to flourish in the branchless banking industry, while establishing a sound microfinance banking platform. In this regard, timely materialization of its strategy is critical.

For more information, contact:
Hammad Rashid
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com