Press Release

JCR-VIS Reaffirms Ratings of Faysal Bank Limited

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Karachi, June 30, 2008: JCR-VIS Credit Rating Company Limited has reaffirmed the entity ratings of Faysal Bank Limited (FBL) at ‘AA/A-1+’ (Double A/A-One Plus) and ratings of its unsecured, subordinated term finance certificates (Issue-I) at ‘AA-’ (Double A Minus). Outlook on the ratings is ‘Stable’. JCR-VIS has withdrawn the preliminary rating of ‘AA-’ (Double A minus) assigned to the second proposed TFC issue of FBL, as the bank has currently shelved plans to issue the bond.

Migration to a modern customer centric core banking application, SYMBOLS, was accomplished over the last year providing the bank with centralized controls and also enabling FBL to offer enhanced services to its customers. The bank has a diversified loan portfolio catering to the corporate, SMEs and consumer market segments. While the quality of consumer portfolio has remained satisfactory, overall portfolio quality indicators have shown some weakening. The banking sector is faced with increasing challenges in the backdrop of deterioration in the local macroeconomic environment.

Branch expansion continued into 2007 with deposits also having increased over the period. The bank may benefit from a broad based depositor profile which has lately shown signs of increasing concentration, also reflected in rising cost of funds. With a number of changes in the top management, an organizational restructuring exercise is in process. The implementation of the bank’s strategy to strengthen controls and improve the institution’s risk management capability will be regularly monitored by JCR-VIS.

For further information on this rating announcement, please contact Ms. Sabeen Saleem (Ext: 510) or Ms. Sobia Maqbool (Ext: 506) at 92-21-5311861 or fax to 92-21-5311873.

Faheem Ahmad
President & CEO

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 not an NRSRO and its credit ratings are not NRSRO credit ratings.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 2008 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