March 28, 2019 (MLN): Pakistan Credit Rating Agency (PACRA) has maintained the entity ratings of First Habib Modaraba at ‘AA+’ for long term and ‘A1+’ for short term, while the outlook on the rating action remains ‘stable’ as well.
According to a press release issued by PACRA on this occasion, these ratings reflect FHM’s strong business profile emanating from healthy asset base, sound asset quality and sustained profitability.
Going forward, the management, while continuing with its growth strategy, intends to expand its outreach to other areas of the country, especially those close to CPEC related projects and more focus would be on vehicle financing
PACRA has elaborated that the above ratings take into account good management quality and a strong control environment and also reaching other customers through different business model.
The ratings are dependent on the management's ability to sustain its competitive positioning while ensuring stable profitability and upon keeping its financial profile intact. Any significant change in its risk profile may adversely impact the ratings, says the rating agency.
