The Pakistan Credit Rating Agency (Pacra) has maintained the long-term and the short-term ratings of the Muslim Commercial Bank Limited (MCB) at "AA" (double A) and "A1+" (A one plus), respectively.
These ratings are applicable to senior unsecured creditors (depositors) of the bank. The rating of unsecured subordinated TFC issue of Rs 1,600 million has been maintained at "AA-" (double A minus).
These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.
The MCB is well positioned to sustain its performance despite an increasingly competitive banking environment. The capacity primarily emanates from a strong franchise and an extensive technology platform, which, with enhanced focus on nonfund-based avenues, will enable the bank to sustain its profitability despite pressure on interest-based revenues.
The ratings also take into account improving asset quality having positive impact on the bank's risk absorption capacity.