December 07, 2018 (MLN): Pakistan Credit Rating Agency (PACRA) has assigned Initial Instrument Rating to Askari Bank Limited | TFC VI (Additional Tier I) at ‘AA-’ for long-term, with a stable outlook forecast.
According to the credit rating agency, the rating reflects relative positioning of the Bank, driven by AKBL's strong ownership structure whereby Fauji Foundation Group – an established business conglomerate with strong financial muscle – holds majority stake.
The management of the bank is eyeing CPEC as an opportunity to capitalize and build its business through its dedicated China Desk and Representative Office in China. This would be supported by extending outreach and on-going focus on generating non-funded income and mobilizing low-cost deposits.
The ratings are dependent upon continuous improvement in asset quality, whereas, effective management of spreads remains important. Meanwhile, notable improvement in CAR is crucial
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