October 29, 2018 (MLN): Pakistan Credit Rating Agency (PACRA) has maintained the entity ratings of Escort Investment Bank Limited (ESBL) at ‘A-‘ for long term and ‘A2’ for short term, with a ‘stable’ outlook forecasted.
Previously on April 18, 2018, the agency had upgraded ESBL’s entity ratings to the above said, with a ‘stable’ outlook forecast.
As per an official press release by PACRA, the ratings reflect the financial strength of the bank's sponsor, Bahria Town (Pvt.) Ltd. “The sponsors have injected sizeable equity into the bank, with more injection on cards. They have enabled the bank to settle off the bulk of liabilities to the deposit holders. The management team is in place and a new business strategy is in the offing.” said the notification.
Synergistic support for Bahria Town is expected to play pivotal role in the business growth of the bank, said the bulletin.
“Going forward, revival of business operations and achieving breakeven will be the management focus; for that Housing Finance is the linchpin. The management core focus will be to achieve breakeven,” said PACRA.
The agency divulged that the ratings are dependent on the continuous sponsor support and achievement of breakeven by the ESBL new management.
“Immaculate financial discipline and corporate governance is important. Any discrepancy in achieving its targets remains critical to the ratings,” said the notification.
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