PACRA Maintains Stability Rating of AL Habib Islamic Income Fund - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- March 02, 2023 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)

Quote

AL Habib Islamic Income Fund (or the "Fund") reflects the medium risk profile. The assigned rating reflects the Fund's moderate credit risk profile emanating from Fund's Investment policy to invest in avenues with sound liquidity. The Fund had allocated ~44.4% in GoP Ijarah Sukuk, ~39.2% in banks majority in AAA rated bank, ~13.4% in Corporate Sukuks rated A+ and above whereas ~3.1% in others at the end Dec'22. The duration of the Fund stood at 24 days at the end Dec'22, limiting exposure to interest rate risk. While the WAM of the Fund stood at 895 days at the end Dec'22. Considering the surging interest rate environment such high WAM is exposing the Fund to high credit risk.

However, the major investment in Govt Securities and triple AAA rated banks is providing comfort to the assigned rating. The unit holding pattern of the Fund was highly concentrated where ~70% were represented by the top 10 investors. As per the assigned rating...