20000224

FABM assigned B-2 rating

RECORDER REPORT

KARACHI: The DCR-VIS has assigned initial entity rating of B-2 (B two) to First Allied Bank Modaraba.

According to the DCR-VIS, the company is managed by Allied Management Services Limited, which is a wholly owned subsidiary of Allied Bank of Pakistan Limited.

The entity rating of First Allied Bank Modaraba (FABM) relies on the strength and support of the ABL. The bank's obvious backing to the modaraba includes arranging funds at very competitive rates of mark-up. The qualification and experience of Modaraba's management, larger capital base along with good history performance and a fairly consistent track of dividend payout are additional factors that have been incorporated in assigned rating.

The management has formulated a strategy to recover the increasing non-performing investments. Effective implmentation of the strategy would be closely monitored by the DCR-VIS.

The credit rating agency said that the B-2 (B two) means good credit quality, sound financial condition and protection factors are adequate.