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DCR-VIS reaffirms BBB, D-3 ratings for IHFL

RECORDER REPORT

KARACHI: DCR-VIS Credit rating agency has reaffirmed triple B (Triple B) and D-3 with positive outlook rating for International Housing Finance Limited.

According to the release of the DCR-VIS, based on the review for 1998-99, the rating for International Housing Finance Limited has been reaffirmed at BBB (Triple B) medium to long-term and D-3 (D three) short-term entity ratings.

The decision was made on improved financial performance of the company in the last couple of years. The company exhibited significant increase in housing finance facilities and profit before tax in 1998-99, despite slow down in economic growth of the country. The ratings also reflect improved efficiency and management's ability to maintain asset quality.

The company is in the process of augmenting its funding sources including use of securitisation vehicle. The funds raised through these sources would help enhance company's housing finance facilities, liquidity and profitability.

DCR-VIS explained that triple B stands for adequate credit quality, reasonable and sufficient protection factors. The risk factors are considered variable if changes occur in the economy.

D-3, the short-term entity rating, means satisfactory liquidity and other protection factors qualify entity/issues as to investment grade. The risk factors are larger and subject to more variation. Nevertheless timely payment is expected.