Pakistan Credit Rating Agency Limited (Pacra) has placed entity ratings of NIB Bank Limited (Long-term A+, Short-term A1) on rating watch with positive implications. The rating action emanates from NIB Bank's intention to acquire majority ownership stake in Pakistan Industrial Credit and Investment Corporation Limited (Picic).
NIB is in the process of initiating a formal due diligence exercise. Pacra would continue monitoring all relate developments, while the ratings would remain on the Rating Watch till the conclusion of the said transaction. The ratings would be reaffirmed thereafter, particularly after reviewing the implications with reference to business prospects and the risk profile of the merged entity.-PR