The Pakistan Credit Rating Agency (Pacra) has maintained the long-term and short-term entity ratings of Bank Alfalah Limited (BAL) at "AA" (double A) and "A1+' (A one plus) respectively. The ratings of three unsecured subordinated TFCs issues of Rs 1,250 million, Rs 1,325mil1ion and Rs 5,000 million have been maintained at "AA-" (double A minus).
These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments. The ratings reflect BAL's sustained market positioning despite increasingly tough operating environment in the country.
The bank's asset quality has been impacted, attributable to continuing pressure on the socio-economic landscape, though infection largely remains concentrated in few segments and is aligned with the peer group. Moreover, the bank's twofold strategy - low-cost deposit mobilisation and cautious advances deployment - is expected to yield better profitability. Meanwhile, the ratings recognise the demonstrated support of Ahu Dhabi group as a key factor.-PR