October 23, 2003	Thursday	Sha’aban 26, 1424

LAHORE, Oct 22: Following the merger of National Development Leasing Corporation Limited (NDLC) and the Pakistani branches of International Finance Investment and Commerce Bank Limited (IFIC) with and into NDLC-IFIC Bank Ltd (NIB), the Pakistan Credit Rating Agency (Pacra) has withdrawn ratings for NDLC.

A Pacra announcement said on Tuesday it had reviewed and evaluated the plans presented by the management of NIB for the post-merger operations of NIB including its projected financial position. Accordingly, Pacra has determined the long-term rating of NIB at “A” (single A) and the short-term rating at “A1” (A one). These ratings, the announcement said, are provisional and imply that there is a low expectation of credit risk and the capacity for timely payment of financial commitments is considered strong.

The ratings of NIB are subject to review, said the announcement, after detailed evaluation of the audited accounts of NDLC for the year ended June 30, 2003, the audited accounts of IFIC as at Oct 2, 2003 and the audited accounts of the merged entity (NIB) as at Oct 2, 2003.

NDLC had issued TFC of Rs500.22 million in 1999 of which the presently outstanding principal amounts to Rs333.11 million with rating of “A+” (A plus). As a consequence of the merger and creation of the new entity — NDLC-IFIC Bank Ltd (NIB) — all the liabilities of NDLC including the TFC obligations stand transferred to NIB. The rating of this TFC is placed on RatingWatch pending finalization of the ratings of NIB, Pacra said.