Lahore, VIS Credit Rating Company Limited (VIS) has reaffirmed the ‘AAA/A-1+’ credit rating for Pakistan Mortgage Refinance Company Limited (PMRC), indicating a stable outlook and high credit quality similar to government securities.

According to VIS Credit Rating Company Limited, the reaffirmation of the ‘AAA’ long-term rating reflects PMRC’s highest credit quality and negligible risk factors, marginally greater than the risk-free Government of Pakistan's (GoP) debt. The ‘A-1+’ short-term rating denotes the highest certainty of timely payment, with outstanding short-term liquidity and safety measures. The previous rating was announced on April 14, 2023.

PMRC, initiated by the State Bank of Pakistan in 2015, operates as the country’s premier mortgage refinance entity, enhancing long-term funding avenues for primary mortgage lenders under both conventional and Islamic financing. The sustained ratings highlight PMRC’s robust shareholding structure, government backing, effective regulatory environment, experienced management, and stringent risk management protocols.

Despite the challenging economic conditions and declining mortgage activities, PMRC's credit risk remains low, supported by prudent risk management and high-quality portfolio indicators. Growth in business and increased yields on investments have led to improved profitability, benefiting from the rising interest rate scenario. PMRC’s liquidity and capitalization are deemed robust, with a substantial portion of its investments in government securities, maintaining the Capital Adequacy Ratio well above regulatory necessities.