The Pakistan Credit Rating Agency Limited (Pacra) has maintained the long-term and short-term entity ratings of IGI Investment Bank Limited (IGI IBL) at "BBB-" (Triple B Minus) and "A3" (A Three), respectively. The ratings denote an adequate capacity for timely payment of financial commitments, said the bank in a notice to the Karachi Stocks Exchange.
Meanwhile, it said, a "Positive Outlook" has been assigned to these ratings. The ratings of IGI IBL reflect strong commitment of key sponsor - Packages Group - to support IGI IBL in case the need arises.
On a standalone basis business profile of IGI IBL is subdued, an outcome of significant losses of recent years mainly led by non-performing assets and higher operational costs structure.
Despite that IGI IBL remained current on its obligations. This, in addition to liquidation of certain assets, was primarily managed through long term interest free loan from sponsor. The ratings have been assigned a positive outlook owing to the evolved clarity on IGI IBL business strategy. This is primarily geared towards providing a wide range of non-fund based financial services. This, interalia, include i) brokerage as well as research services through merger of IGI Finex Securities Limited, wholly owned subsidiary of IGI IBL, with and in to the IGI IBL, ii) debt instrument custodian/trustee services, iii) fund mobilisation under its relatively established for mutual funds distribution - "Fund Select" platform, iv) corporate advisory and v) wealth management / investment advisory.-PR
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