JCR-VIS Credit Rating Company Limited has reaffirmed entity ratings of First Al-Noor Modaraba (FAM) at 'BBB/A-3' (triple B/A-three). Outlook on the rating is 'stable'. Amidst unfavourable business trends since FY08, the modaraba has exhibited a cautious approach towards its core business activities.
FAM has remained consistently profitable over the years, even though earnings were adversely affected during the period FY08-FY10, on account of impairment on investments. Losses on investments have since reduced notably. The modaraba is actively engaged in commodity trading in addition to financings under the traditional Islamic modes.-PR