The Pakistan Credit Rating Agency (Pacra) has maintained the long-term rating at 'A' (Single A) and the short-term rating at 'A1' (A One) of House Building Finance Corporation (HBFC). These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.
HBFC's ratings reflect the Corporation's sound equity base signifying high-risk absorption capacity and strong underlying security against loans. While in the medium-term, the Corporation will continue to retain strong capacity to service its obligations, the long-term sustainability of operations was faced with a degree of uncertainty, on account of continued repayments of SBP's credit lines.
Considering the significance of HBFC's pivotal role in GoP's commitment in expanding the housing stock in the country, the government was likely to provide adequate financial support for continued operations through rescheduling of these lines, for which negotiations were already in hand. The outcome of these negotiations will remain critical for future prospects of the Corporation.-PR
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