The Pakistan Credit Rating Agency (Pacra) has maintained the long-term and short-term entity ratings of Modaraba Al-Mali (MAM) at "A-" (single A minus) and "A2" (A two), respectively. Meanwhile, the negative outlook on the ratings has been removed.
These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments. The ratings reflect the strength derived by MAM due to its association with one of the leading Islamic banks - Bank Islami Pakistan Limited.
MAM's business risk profile has started seeing gradual improvement, as the Modaraba's maintenance services are expanding to generate profits. Moreover, other business segments - with the arrangement's concerted efforts - are indicating signs of revival, emanating from encouraging prospects in key business niches. In addition, the ratings recognise MAMs predominantly equity based capital structure engendering relatively strong risk absorption capacity.-PR
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