Pakistan Credit Rating Agency (Pacra) has maintained the long-term and short-term rating of First Habib Modaraba (FHM) at "AA+" (Double A Plus) and "A1+" (A One Plus), respectively. The rating denotes a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.
The ratings denote FHM's sound risk absorption capacity emanating from an equity dominated financial structure and sustained profitability despite continuing volatile economic conditions. Moreover, the Modaraba has a strong liquidity profile, as reflected in its sizable investment book, yielding a stable earning stream. FHM's risk-averse business strategy has enabled the Modaraba to maintain very strong asset quality despite continuing volatile economic conditions. Ijarah financing continues to remain FHM's strong forte, though the management is working to diversify its financing portfolio by taping hitherto unexplored potential areas of business. Meanwhile, FHM's association with the House of Habib remains a key factor.-PR