Lahore, January 14, 2016 (PPI-OT):The Pakistan Credit Rating Agency Limited (PACRA) has maintained the long-term and short-term entity ratings of IGI Investment Bank Limited (IGI IBL) at “BBB-” (Triple B Minus) and “A3” (A Three), respectively. The ratings denote an adequate capacity for timely payment of financial commitments. Meanwhile, “Positive Outlook” assigned to these ratings remain intact.
The ratings of IGI IBL reflect strong commitment of key sponsor – Packages Group – to continue providing financial support to the bank. On a standalone basis business profile of IGI IBL is subdued, an outcome of significantly curtailed operational scale; however, pre-provision performance improved with decline in related costs. Meanwhile, the management aggressively pursued recoveries from delinquent assets, resulting in positive bottom-line.
The positive outlook on the ratings of IGI IBL capture expected improvement in business profile, as the management is pursuing merger of IGI Finex Securities Limited, wholly owned subsidiary of IGI IBL, with and in to the IGI IBL. This would enable the merged entity to focus on a strategy to provide a wide range of non-fund based financial services, including i) brokerage with related research services, ii) debt instrument custodian/trustee services, iii) mutual funds distribution capitalizing on, “Fund Select” platform, iv) corporate advisory and v) wealth management. The ratings are dependent on continuous support from the sponsor. Meanwhile, sustainable core revenue stream has to be built.
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