January 10, 2006	Tuesday	Zilhaj 9, 1426

LAHORE, Jan 9: The Pakistan Credit Rating Agency (Pacra) has maintained the long- and short-term entity ratings of First International Investment Bank Limited at “A” (single A) and “A1” (single A one).

These ratings, says a Pacra press announcement issued here on Monday, indicate a low expectation of credit risk and a strong capacity for timely

payment of financial commitments.

The ratings reflect the bank’s sustained strong risk absorption capacity, which is primarily an outcome of its conservative stance towards risk supported by an effective credit risk management system, says the announcement.

“However, at the same time the bank, owing to fine pricing to ensure good credit quality and high cost structure, continues to experience subdued profitability.”

“The management, to overcome this impediment and being cognizant of the changing operating environment in the fund-based business, has identified fee-based investment banking activities as main revenue drivers. But as most of these initiatives are at initial stage, the ability to operationalize the strategy into stable revenue streams and the timing and extent of contribution to the bottom line remains to be seen,” it says.