Press Release

JCR-VIS revises ratings of Crescent Commercial Bank Limited to BBB/ A-2
 

Karachi, July 3, 2006: JCR-VIS Credit Rating Co Ltd. has revised the ratings of Crescent Commercial Bank Limited (CCBL) to BBB / A-2 (Triple B / A-Two). The ratings will be on a ‘Rating Watch’ for an interim period owing to the CCBL board’s resolution to consider the merger with Pakistan Industrial Credit and Investment Corporation (PICIC) and PICIC Commercial Bank in line with the directives issued by the State Bank of Pakistan (SBP).

JCR-VIS has noted that the bank has been selected for a strategic investment by Actis Capital LLP (Actis), a leading private equity investor in emerging markets with approximately USD 3 billion currently under management, and is awaiting SBP approval. The proposed transaction will offer Actis a 25% share of the bank which would be subject to due diligence, regulatory approvals, and subscription by the remaining CCBL’s sponsors. The positive impact of this strategic investment would be incorporated in JCR-VIS ratings soon after the finalization of the Sale and Purchase Agreement and upon the quantum of equity to be injected in the bank becoming known. JCR-VIS has also noted that following the change in senior management last year, significant emphasis has been placed towards implementing systems and controls, risk management and monitoring, and strengthening of various management cadres. This process is already underway. Substantial amount of provisions were made against non-performing assets during 2005, and the sponsors indicated their timely support by re-capitalizing the bank to the required level.

JCR-VIS will continue to monitor the management’s efforts towards the strategic investment by Actis, strengthening of the core management team, and procurement of new business and will incorporate the impact on ratings accordingly soon thereafter.

For further information on this rating announcement, please contact the undersigned (Ext: 221) or Ms. Sabeen Saleem (Ext: 222) at 5671822/5671833/5680996 or fax to 5681105/5671600.



Safdar Kazi
Advisor

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Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited VIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2006 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.

JCR-VIS Credit Rating Company Limited