November 30, 2018 (MLN): Pakistan Credit Rating Agency (PACRA) has maintained the stability rating of BMA Chundrigar Road Savings Fund at ‘AA+(f)’ for long term, with a ‘stable’ outlook forecast.
According to an official press release issued by PACRA, the rating reflects the fund's average credit quality and liquidity profile.
At end-Jun18, the fund is invested in TFCs 2%, while exposure as cash with banks was approximately 97%.
The exposure was with banks rated 'A' and above with the highest exposure in ‘A’ 80%. The fund WAM stood at 38 days as at end Jun-18, says the agency.
The unit holding pattern of the fund is highly concentrated with the top 10 investors representing 96% of the net assets.
Going forward, the fund intends to maintain its exposure towards cash with banks rated A- and above.
The main risk factors affecting the stability of returns are the sensitivity of government securities to changes in interest rates.
Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk remains critical for the rating.
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