The JCR-VIS Credit Rating Company Limited has reaffirmed the credit ratings of International Housing Finance Limited (IHFL) at 'BBB+/A-3' (Triple B Plus/A Three). The outlook on the medium to long-term ratings remains 'Positive'.
JCR-VIS believes that with a public share offer of Rs 250 million, including a premium of Rs 2.5 per share, the company's equity base has strengthened. IHFL is now listed on Karachi Stock Exchange. Its portfolio has also increased over the last one year with strong growth prospects for the current year.
Although the company's cost and growing organisational infrastructure for FY2005 has resulted in lower operating margins for the year, with an increase in business volumes and exploration of higher yielding avenues in housing finance, profitability margins are expected to improve in the long term.