VIS Reaffirms Entity Ratings of The Bank of Khyber - Press Release issued by VIS Credit Rating Company Limited.

Karachi -- June 30, 2020 (PPI-OT)

Following is the text of press release issued by VIS Credit Rating Company Limited

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VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of The Bank of Khyber (BoK) at 'A/A-1' (Single A/A-One). 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 the economy. The short-term rating of 'A-1' denotes high certainty of timely payment, liquidity factors are excellent and supported by good fundamental protection factors. Outlook on the assigned rating is 'Stable'. The previous rating action was announced on June 26, 2019.

The ratings assigned to BoK reflect its shareholding structure, as majority shareholding of the bank is held by the Government of KPK. The ratings are supported by steady growth in advances portfolio, largely stable asset quality and adequate liquidity profile. The ratings also factor in improvement in profitability during FY19 as the bank recorded gain on sale of government securities vis-a-vis a significant loss in the corresponding period. With higher equity base and significant new exposure to public sector, the bank witnessed notable improvement in Capital Adequacy Ratio.

Regulatory relief measures undertaken by regulator to promote financial stability, ensure continued credit supply to the economy and maintain confidence in the banking system have been received...