Press Release

VIS Upgrades Entity Ratings of Kashf Foundation to 'A-/A-2'

Karachi, May 14, 2019: VIS Credit Rating Company Limited (VIS) has upgraded the entity ratings of Kashf Foundation (KF) to ‘A-/A-2’ (Single A Minus/A-Two) from ‘BBB+/A-3’ (Triple B-Plus/A-Three). The medium to long-term rating of ‘A-’ denotes good credit quality with adequate protection factors. Moreover, risk factors may vary with possible changes in economy. The short-term rating of ‘A-2’ denotes good certainty of timely payments coupled with sound liquidity and company fundamentals. Outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on April 12, 2018.

The ratings assigned to KF take into account improvement in financial risk profile of the institution emanating from augmentation of equity base in line with enhanced profitability on account of continued growth in micro-credit portfolio. Ratings derive strength from sound asset quality indicators; the maintenance of which is considered crucial to sustain profitability in line with sizable increase in business operations. KF’s extensive experience in the microfinance sector, a well-articulated lending methodology and a sound internal control infrastructure remain key rating factors. In addition, the ratings also incorporate ease of access and mobility of foreign funding to support growth initiatives in the medium term. The company has a policy to hedge all the foreign currency financing for full tenor of the loan. The ratings are dependent upon maintenance of operational self-sufficiency, gearing and liquidity indicators within stipulated benchmarks.

For further information on this rating announcement, please contact the undersigned at 021-35311861-70 or Mr. Maimoon Rasheed at 042-35723411-13.

Javed Callea

Applicable rating criterion: Micro Finance Institutions

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 2019 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

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