LAHORE, April 4: The Pakistan Credit Rating Agency (Pacra) has maintained the entity ratings of the First Punjab Modaraba (FPM) at “A” (single A) and “A1” (single A one) for the long-term and short-term. The ratings, said an announcement by Pacra on Monday, denoted a low expectation of credit risk and a strong capacity for timely payment of financial

commitments.

FPM’s ratings reflected its good asset quality and largely sustained performance from core operations, the announcement said. It added the ratings also took into account the management’s strategy for leveraged volume expansion and diversification of the financing portfolio. “The management, at the same time, is cognizant of risks arising from its rapid growth stance and is, therefore, continuously improving its control systems.”

The company, established in 1992, is a perpetual, multi-purpose modaraba, listed on the three stock exchanges of the country.

The Punjab Modaraba Services (Pvt) Ltd, a wholly owned subsidiary of the Bank of Punjab, manages the company with 38 per cent stake in the company.