July 2, 2019 (MLN): VIS Credit Rating Company Limited has reaffirmed the entity ratings of Meezan Bank at ‘AA+/A-1+’ (Double A Plus/ A-One Plus) and ratings of the outstanding Basel 3 Compliant Tier 1 and Tier 2 Sukuk of Meezan Bank at ‘AA-’ (Double A Minus) and ‘AA’ (Double A) respectively.
The outlook on the assigned ratings is ‘Stable’.
As per a press release circulated within the market, the assigned ratings incorporate Meezan Bank’s dominant market positioning, particularly in the Islamic banking market, and strong franchise value.
Furthermore, the ratings also incorporate the strength and stability of the senior management team spearheaded by the founding President and Chief Executive Officer (CEO).
According to VIS, “Meezan Bank’s Capital Adequacy Ratio (CAR) stands comfortably above the regulatory requirement and complies with our criteria for ‘AA+’ rated banks.”
Further reinforcement of capital buffers is on the anvil, given plans to issue another Basel 3 compliant Tier 2 Sukuk instrument within the ongoing year, says VIS.
The ratings are dependent upon continued maintenance of the control environment, asset quality and sound capital buffers, they added.
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