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The Pakistan Credit Rating Agency Limited

P RRESS ELEASE

PACRA MAINTAINS THE RATINGS OF BANK AL

HABIB LIMITED

The Pakistan Credit Rating Agency (PACRA) has maintained long term

and short term entity ratings of Bank AL Habib Limited at "AA+"(Double A Plus) and "A1+" (A One Plus), respectively. The ratings oflisted, unsecured subordinated TFC issue of PKR 1,500mln and twoprivately placed, unsecured subordordinated TFCs issues of PKR2,000mln and PKR 3,000mln have also been maintained at "AA"(Double A).These ratings denote a very low expectation of credit risk emanating from avery strong capacity for timely payment of financial commitments.

The ratings reflect Bank AL Habib's strong performance, exceptional assetquality, and stable financial profile. The ratings draw comfort from the bank'sexperienced management team, that, while staying prudent in its practices, hasbuilt deep rooted relationship with its customers - borrowers as well as

depositors. The rating incorporates the bank's ability to capitalize on itsexpanding branch network augmenting deposit mobilization. The managementcontinued to place deposits in liquid investments while seeking diversificationin its advances portfolio at the same time.

About the Bank:Bank AL Habib's (BAHL) sponsors are members of Habibfamily - one of the oldest and most distinguished names in Pakistan's bankingsector. BAHL's ten-member BoD has five representatives of Habib family,including the CEO and an executive director, three independent directors andtwo non-executive directors. The board, while providing strategic guidance tothe management, monitors the bank's policies and operations through itscommittee structure. Mr. Abbas D. Habib, the CEO, has over four decades of

experience in domestic and international markets.

Presently, the bank operates a network of 397 branches/sub-branches/representative offices (end-Mar13). At end-Dec12, BAHLrepresents 5% (2011: 5%) of the total banking sector assets.

The TFCs

BAHL's 2nd unsecured subordinated TFC of PKR 1,500mln, issued in Feb-07for a tenor of 8yrs, carries profit rate of 6M K+1.95%. Major principalpayment will be in semi-annual installments commencing from Aug-14.BAHL's 3rd, privately placed, unsecured subordinated TFC of PKR 2,000mln,issued in Jun-09 for a tenor of 8yrs, carries mark-up of 15.5% (Yr 1-5) and

16% (Yr 6-8) payable quarterly. Major principal redemption is in 4installments, starting from Sep-16. BAHL's 4th, privately placed, unsecuredsubordinated TFC of PKR 3,000mln, issued in Jun-11 for a tenor of 10yrs,carries profit of 15% (Yr 1-5) and 15.5% (Yr 6-10) payable semi-annually.Both the privately placed TFCs carry a Call Option on any profit payment dateafter 5 years of issue date with prior approval of SBP.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor

its obligations. Our ratings reflect an independent, professional and impartial assessment of the

risks associated with a particular instrument or an entity.

PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial

strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is

not a recommendation to purchase, sell or hold a security, in as much as it does not comment on

the security's market price or suitability for a particular investor.

Rating Action

Lahore : 26-Jun-2013

Analyst

Noman Umar(+92-42-35869504)noman.umar@pacra.comwww.pacra.com

Applicable Criteria andRelated Research

- Bank Rating Methodology

DisclaimerThis press release is being transmitted

for the sole purpose of dissemination

through print/electronic media. The

press release may be used in full or in

part without changing the meaning or

context thereof with due credit to

PACRA.

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