The ratings of the two tranches of secured Term Finance Certificates -TFCs (Rs 200 million and Rs 100 million) have been upgraded to 'AA-' (Double A minus). This rating denotes a very low expectation of credit risk and a very strong capacity for timely payment of financial commitments.
The ratings of AIBL reflect the bank's success in continuously augmenting the bottom line through improved net interest income supplemented by substantial revenue from diversified sources.
The ratings also factor in the substantially improved asset quality. The enhanced risk absorption capacity emanating from strong coverage relative to the bank's equity is also a key factor.
ABOUT THE INSTRUMENTS: The bank has two secured TFCs in issue carrying a profit rate of 15 percent pa payable semi-annually. The first tranche (Rs 200 million) has an outstanding balance of Rs 99.9 million, with the final payment due in September 2005.
The second tranche (Rs 100 million) has an outstanding balance of Rs 83.3 million, with the final payment due in August 2006. Both the issues are secured by a first pari passu charge on leased assets and related receivables with a 30 percent margin on the principal value.
ABOUT THE BANK: Atlas Investment Bank Limited (AIBL) was established in 1990 as a joint venture of the Atlas Group, the Bank of Tokyo-Mitsubishi Limited and Asian Development Bank.
The bank is listed on all three bourses of the country with Atlas Group as the majority shareholder. AIBL offers a diversified range of services such as lease financing and money and capital market brokering, and with an asset base of PKR 6 billion, as at September 30, 2004, it is one of the largest and most diversified of all investment banks.
The eight-member Board of Directors (BoD) comprises one nominee of National Investment Trust (NIT), while the remaining seven represent the Atlas Group.