Pacra Assigns Aa/a1+ Rating To PMIC
The Pakistan Credit Rating Agency has assigned entity ratings of “AA/A1+” with a Stable Outlook to Pakistan Microfinance Company Limited (PMIC).
PACRA has stated that the ratings of PMIC take into account the strong support of the sponsoring institutions; Pakistan Poverty Alleviation Fund (PPAF), Karandaaz Pakistan — funded by UK’s Department for International Development (DFID) — and the KfW Development Bank, a government owned German development bank. On a standalone basis, the strong financial risk profile of PMIC also provides comfort to the assigned ratings.
Considering the vital role of microfinance sector in Pakistan in enhancing financial inclusion, the establishment of PMIC was envisaged as part of the National Financial Inclusion Strategy developed for Pakistan. As a catalyst, PMIC meets the liquidity needs of the sector, which requires USD 3 billion to reach a target of 10 million active clients by the year 2020. Moreover, PMIC has also introduced Microfinance Plus services which contribute to its mission of providing broad-based services and diverse product menu to its clients.