JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned initial medium to long term entity rating of `AA' (double A) and short-term rating of 'A-1+' (A-one plus) to Askari Bank Limited (AKBL). The outlook on the assigned rating is stable, said a press release here on Tuesday.
The ratings take into account implicit support available to Askari Bank Limited from its principal shareholder, Fauji Foundation Group (FFG). Since the bank's acquisition, the group has demonstrated its capacity and willingness to support the bank through equity injection, FFG is one of the largest business conglomerates in Pakistan with a well diversified and strong presence in various sectors of the economy. Moreover, entities operating under the umbrella of FFG largely have robust financial profile. Following the change in shareholding, there was a change at the helm of the institution.
The incumbent president has taken various initiatives to strengthen financial profile of the bank. These include cleansing of balance sheet by making substantial provisions to cover prior losses and enhancement of recovery efforts by revitalising special asset management division.
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