The Pakistan Credit Rating Agency (PACRA) has upgraded the long-term entity rating of MCB Bank Limited to "AA+" (Double A plus), while maintaining the short-term rating at "A1+" (A one plus).
The rating of unsecured subordinated TFC issue of Rs 1,600 million has also been upgraded to "AA" (Double A). These ratings denote a very low expectation of credit risk, emanating from a very strong capacity for timely payment of financial commitments.
MCB's ratings reflect the bank's very strong risk absorption capacity, emanating from its strengthened capital structure supplemented by a sound asset quality.
The ratings also take into account the management's demonstrated ability of aligning the operations in line with the changing dynamics of the sector, enabling the bank to remain well positioned to face competitive pressures.
MCB Bank issued unsecured subordinated TFC of Rs 1,600 million during August 2002 for a tenor of 51/2 years at a floating rate of latest cut-off yield on five-year PIB plus 1.50 percent with a floor of 11.75 percent and a cap of 15.75 percent. Major principal redemption will be in three unequal instalments, commencing February next.
A number of distinguished corporate groups, led by Nishat Group, jointly own majority stake in MCB since its privatisation in 1991. MCB continues to derive substantial benefits from the resourcefulness, financial strength and business acumen of the members of the board of directors.
The President and Chief Executive Mohammad Aftab Manzoor has extensive banking experience locally and abroad and has been in this position for the last six years.
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