Lahore: PACRA has maintained the long-term and short term ratings of MCB Bank Limited (MCB) at “AA+” (Double A Plus) and “A1+” (A One Plus), respectively. 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 MCB’s strong financial profile mainly emanating from its sound liquidity, solid capitalization, and robust profitability. The bank, while following a cautious lending strategy, has maintained good asset quality. The ratings factor in the bank’s strong market position, characterized by its established brand, and extensive branch network equipped with requisite technology infrastructure. This benefits the bank in maintaining a low cost deposit base as compared to its peers.
The ratings are dependent on the bank’s ability to uphold its existing positioning in the banking sector. At the same time, maintaining asset quality while reviewing its risk management systems on a continuous basis in line with changing market conditions would remain important to cater future challenges.