May 24, 2003	Saturday	Rabi-ul-Awwal 21,1424

LAHORE, May 23: The Pakistan Credit Rating Agency (Pacra) has upgraded the long-term and short-term ratings of Crescent Investment Bank Limited (CresBank) to “A-” (single A minus and “A1” (single A one).

An announcement issued by Pacra on Friday said the ratings were applicable to senior unsecured creditors of the bank and indicated that there was currently a low expectation of credit risk and the capacity for honouring financial commitments was considered strong. However, this capacity might be more susceptible to changes in circumstances or in economic conditions than is the case for higher ratings.

The bank’s ratings were placed on the Rating Watch and downgraded subsequent to marked deterioration in the capital structure and risk profile of the bank during Sept 2001. Since then, the capital structure has been strengthened through considerable reduction in liabilities and the enhanced capital base. Pacra is of the opinion that the bank now has a strong capacity to meet its financial obligations in the absence of any unforeseen development.

The ratings also recognize the substantial reduction in potential market risk emanating from the bank’s large exposure to the equity market in the past after considerable reduction in the size of the equity investment portfolio.