Pakistan Credit Rating Agency maintains ratings of Allied Bank Limited

Lahore, June 27, 2014 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained long term and short term entity ratings of Allied Bank Limited at “AA+” (Double A Plus) and “A1+” (A One Plus), respectively. The rating of the unsecured, listed and subordinated TFC II (PKR 3,000mln) has also been maintained at “AA” (Double A). The ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.

The ratings reflect demonstrated efficacy of ABL’s strategy aimed at ensuring consistent profitability without compromising quality of other key variables. The bank remains focused on strengthening its infrastructure and improving quality of service – pre-requisites to enhance market penetration in a competitive environment.

The ratings recognize the management’s concerted efforts in sustaining the sound asset quality despite concentration in the advances portfolio. The bank continues to leverage its expanded outreach for deposits growth, while selectively expanding its advances portfolio.

Pakistan’s banking landscape, particularly for established banks like ABL, is experiencing high competition and requires dynamism to hold respective position. ABL’s ratings are dependent on further diversification in its revenue stream as well as deposits and advances. The ensuing profitability should add further strength to the core capital. Meanwhile, strengthening of governance structure would augur well for the ratings.

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

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