June 28, 2003	Saturday	Rabi-us-Sani 27,1424

LAHORE, June 27: The Pakistan Credit Rating Agency (Pacra) has assigned the Trust Investment Bank Limited (TIBL) long-term and short-term ratings of “BBB-” (triple B minus) and “A3” (single A three).

TIBL is currently in the process of merging/amalgamating with Fidelity Investment Bank Ltd and local operations of Doha Bank, Qatar, to form Trust Commercial Bank Ltd.

A Pacra announcement on Friday said the entity ratings were applicable to the senior unsecured creditors of the company. The secured TFCs (TFC-I: Rs287 million, TFC-II: Rs334 million (first tranche) have been assigned a rating of “BBB” (triple B). These ratings have also been placed on the Rating Watch pending the completion of the proposed merger/amalgamation process. The ratings indicate that there was currently a low expectation of credit risk and an adequate capacity for timely payment of financial commitments.

TIBL’s ratings reflect the constrained business growth and asset quality with increasing proportion of non-earning assets. The management is hopeful of a quick turnaround in terms of improved prospects following the expected change of status to a commercial bank.