The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term ratings of "AA+" (Double A plus) and "A1+" (A-One Plus), respectively, of First Habib Modaraba (FHM). These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.
The ratings denote FHM's sound risk-absorption capacity emanating from a strong equity base. Moreover, the Modaraba has a healthy liquidity profile, as reflected in its sizable investment book, yielding a stable dividend stream. The FHM's risk-averse business strategy has enabled the Modaraba to sustain very strong asset quality despite continuing distressed economic conditions.
Ijarah financing continues to remain FHM's strong forte, though the management is working to diversify its financing portfolio by taping hitherto unexplored potential areas of business. Meanwhile, FHM's association with the House of Habib remains a key factor.
First Habib Modaraba, established in 1985 and listed on all the bourses of the country, is a perpetual multipurpose Modaraba engaged in Islamic modes of financing, mainly Ijarah (lease). FHM, managed by Habib Modaraba Management Company (Pvt) Limited (HCML) is associated with House of Habib (HoH).--PR
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