January 28, 2003	Tuesday	Ziqa’ad 24, 1423

LAHORE, Jan 27: The Pakistan Credit Rating Agency (Pacra) has upgraded the long-term rating of Jahangir Siddiqui Investment Bank Limited to “A” (single A), and the short-term rating to “A1” (single A one).

The improved ratings, according to a Pacra announcement issued Monday, are applicable to senior unsecured creditors (depositors) of the bank. JSIBL’s ratings indicate a low expectation of credit risk and its strong capacity for timely repayment of financial commitments.

The ratings reflect the company’s improvement in performance, robust growth and enhanced stability in the income stream that stems from greater reliance on mark-up based sustainable sources of income while maintaining strong liquidity and good asset quality.

These ratings also take into account the increased investment in equity securities which expose the bank to a relatively higher market volatility. At the same time, the Pacra said, due to high quality equity portfolio, earnings are expected to rise in the short run, resulting in an improvement in risk absorption capacity of the bank.