Pacra maintains ratings of Soneri Bank

Pakistan Credit Rating Agency (Pacra) has maintained long-term and short-term entity ratings of Soneri Bank Limited at "AA-" (double A minus) and "A1+" (A one plus), respectively. The rating of unsecured, subordinated TFC issue of PKR 1,200 million has also been maintained at "A+" (single A plus).
The ratings denote a low expectation of credit risk, emanating from a strong capacity for timely payment of financial commitments. The ratings reflect SBL's modest but largely stable system share with focus on gradual network expansion, improving risk management function, and broadening asset base in line with its conservative business strategy.
However, lately, SBL witnessed significant deterioration in asset quality, mainly on account of the weak socio-economic environment, despite its cautious credit expansion policy. Resultantly, the bank's profitability declined considerably. Nevertheless, the bank maintains good liquidity profile and adequate risk absorption capacity.-PR