KARACHI, April 10: The JCR-VIS credit rating company has assigned initial medium to long-term entity rating of double B with stable outlook and short-term entity rating of single B to the Asian Housing Finance Ltd (AHFL).

The rating is primarily based on the low levels of borrowing of the company combined with the initial efforts of the new sponsors in order to revitalize its portfolio, says a press release.

“Our main concerns are with respect to the capital structure of the AHFL and the high level of non-performing assets which is causing a drag on profitability,” says the JCR-VIS.

“We have taken note of the resolution passed by the board of directors of AHFL expressing their intention to raise paid-up capital from Rs100 million to Rs200 million and will track developments in this regard closely.

The JCR-VIS will also monitor the efforts of the AHFL to expand its operations and the plan to mobilize resources that would be required.”