June 27, 2019 (MLN): VIS Credit Rating Company Limited has reaffirmed the rating assigned to Tier-II instrument of Askari Bank Limited (AKBL) -5th Issue of Term Finance Certificate at ‘AA-’. Outlook on the assigned rating is ‘Stable’.
The long term rating of ‘AA-’ signifies high credit quality; protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions.
The ratings assigned to AKBL incorporate its association with the primary sponsor, Fauji Foundation Group, a diversified conglomerate with strong financial muscle having business interests in different sectors of the country.
The ratings draw comfort from the bank having a consistent market share in domestic deposits and advances. The ratings also derive strength from continuous improvement in asset quality, efficient cost of funds, effective management of spreads and satisfactory capitalization.
Moreover, the ratings draw comfort from the low risk profile of the institution supported by sound liquidity indicators.
