JCR-VIS Credit Rating Company Limited has reaffirmed the entity ratings of Sindh Bank Limited at double A/A-one plus.
The ratings have been placed on ‘Rating Watch-Developing’ status in view of the on-going merger with another commercial bank. The previous rating action was announced on June 30, 2017, said press release. Current ratings of SBL take into account the shareholding structure of the bank being vested with Sindh Government.
Ratings also reflect adequate capitalization and liquidity profile, and improving operating profitability levels on the back of volumetric growth in earning assets. Ratings are constrained by sizeable exposure to credit and market risk and significant concentration in deposit and financing portfolio.—APP