The Pakistan Credit Rating Agency (Pacra) has assigned a long-term rating of "A-" (A minus) and a short-term rating of "A2" (A Two) to Atlas Bank Limited (ATBL). These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.
The ratings reflect ATBL's potential capacity to establish a niche in the increasingly competitive commercial banking sector. This capacity flows from: (a) the established investment banking platform of the bank and (b) leveraging the group's franchise and established business relationship to create a captive clientele.
At the same time, it could take some time for the bank to completely overcome its inherent constraints: the low deposit base, limited outreach, and pressure on spreads.
The new sponsors - Atlas group - have formulated a well-conceived business strategy to deal with these constraints. The strategy includes putting in place the requisite infrastructure including a competent management team, technology initiatives and expanded branch network.