KARACHI, Jan 24: Pakistan Credit Rating Agency (Pacra) has maintained the mutual fund rating of AA (double A) for Unit Trust of Pakistan (UTP), said a statement on Friday.

It said the rating denotes the “ability of the UTP to consistently outperform its peers with strong capacity to respond to future opportunities or stress situations”.

The statement further pointed out that while maintaining the rating, Pacra has taken cognizance of the proven ability of the management to capitalize on emerging opportunities in the market in a difficult environment with effective policies.

It maintained that the rating also takes into account the increased investment in equity securities which exposes the UTP to relatively higher market volatility while at the same time the sharply rising trend in the stock market is expected to stimulate earnings in the short run.—APP