Pakistan Credit Rating Agency maintains Ratings of Soneri Bank Limited

Lahore, June 26, 2013 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term entity ratings of Soneri Bank Limited at “AA-” (Double A minus) and “A1+” (A one plus), respectively. These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.

The ratings reflect improving business profile of SBL emanating from (i) growth in system share, albeit gradual (ii) increasing outreach and (iii) improving profitability mainly supported by trade finance linked non-fund based income. Although SBL carries cautious credit expansion, it could not isolate itself much from the impact the weak socio-economic environment.

The bank’s asset quality remained under pressure with limited improvement. Keeping in view, the bank has been continuously improving its risk management infrastructure. Meanwhile, the management has geared up recovery efforts against existing infected portfolio. Going forward, the bank, while largely consolidating its existing infrastructure, would focus on a cautious growth strategy to fortify its market positioning in the highly competitive banking industry. The bank maintains good liquidity profile and adequate risk absorption capacity. The demonstrated support of the key sponsor – Feerasta Family – remains a key factor in 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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