The Pakistan Credit Rating Agency (Pacra) has maintained the long-tern and short-term entity ratings of Modaraha Al Mali (MAM) at A- (single A minus) and A2 (A two) respectively, says a press release. These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.
The ratings reflect MAMs association will an emerging Islamic bank in Pakistan - BankIslami Pakistan Limited. Furthermore, MAM has predominantly equity based capital structure engendering relatively strong risk absorption capacity. The ratings have been assigned negative outlook' attributable to increased business risk of the Modaraba, an outcome of its recent entry into a new business avenue wherein related risk management systems and relevant expertise yet to be demonstrated.-PR
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