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 rating of unsecured, subordinated term finance certificates of PKR 1,200mln by Soneri Bank limited has been maintained at A+ (Single 1 plus). The rating denotes a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments. The ratings reflect the bank's good asset quality, an outcome of its low risk appetite. However, at the same time, with its conservative stance on growth, the bank is trying to maintain its relative position in the intensifying competition and fast growing sector dynamics. These ratings are dependent on the bank's ability to retain its relative standing amongst peers, amidst intensifying competition.
The President and Chief Executive, with over four decades of domestic and international banking exposure, manages the operations of the bank through a team of experienced professionals. The continuity of top management has lent stability to the management structure over the years.
About the TFC: SBL issued unsecured listed, subordinated TFCs of PKR 1.2bln for a tenor of 8 years in May 2005. The profit payment, to be made semi-annually, is based on 6 months KIBOR plus 160bps. The principal will be redeemed in four equal semi-annual instalments starting from the 78th month (October 2011) from the issue date. The TFC holders are exposed to a relatively higher risk, as the obligations towards the TFC holders are subordinate to those of other creditors including depositors of the bank.-PR
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