KARACHI: VIS Credit Rating Company Limited has  maintained the entity ratings of House Building Finance Company at  single A/A-One.

The outlook on the assigned ratings has been revised from stable  to positive. The long-term rating of A signifies good credit quality; protection factors are adequate, said a press release on Monday.

Risk factors may vary with possible changes in the economy. The  short-term rating of A-1 indicates high certainty of timely payment--liquidity factors are excellent and supported by good  fundamental protection factors. Previous rating action was announced  on May 14, 2018.

The revision in rating outlook reflects increase in management  stability, improvement in asset quality and projected enhancement in financial profile with growth in advances portfolio. Ratings will  remain dependent on continuing trend in asset quality improvement and sustaining recovery from non-performing portfolio.

The assigned  ratings continue to factor in sovereign ownership of HBFC, with  Government of Pakistan holding entire stake in the company directly  and indirectly through State Bank of Pakistan.

The ratings also reflect strong capitalisation and healthy liquidity  profile of HBFC.

The company has recently mobilized fixed-rate funding  line from Pakistan Mortgage Refinance Company Limited of up to Rs.3.6b  with a tenor of 20 years.