Credit Rating Report on Bangladesh Industrial Finance Company

							                                     Credit Rating Report on
                          Bangladesh Industrial Finance Company Limited




Address:                  This is a surveillance rating report on Bangladesh Industrial Finance Company Limited as per the MOU signed by the
                          company with CRISL; CRISL long-term rating is valid for one year while short-term rating carries validity of six
Credit Rating             months. After the above periods, this surveillance rating will not carry any validity unless the same is updated.
Information and
Services Limited
Nakshi Homes, 5th Floor
6/1A Topkhana Road                                                                               Long Term                                    Short Term
Segunbagicha
                            Entity Rating                                                                         BBB-                                ST-4
Dhaka-1000
Tel: 7173700-1 (PABX)       Date of Rating                                                                                April 18, 2006
Fax: (8802) 9565783
Email:
crisl@bdonline.com
                           01.       RATIONALE
Analysts:                                                                                                                   Outstanding Credit Portfolio
                           CRISL upgrades rating of Bangladesh
Mir Farhad Ali             Industrial Finance Company Limited (BIFC)                                        1500
Nazmul Hossain             to BBB- (triple B minus) from BB+ (double B
                           plus) in the long term and reaffirmed ST-4 in




                                                                                              Million Tk.
                                                                                                            1000
                           the short term. The above has been done on
Entity Rating:             the basis of its good fundamentals such as
                           profitable    financial performance,     asset                                     500
Long term: BBB-
                           quality, capital base, IT infrastructure, etc.
Short term: ST-4           However, the above factors are constrained                                               0
                           by low fee income, inadequate internal                                                            2005            2004            2003
Date of Rating:            control system, high cost funding, significant
                           amount of rescheduling credit, etc. Financial                                                                     Year
18th April, 2006                                                                                                   Lease Finance     Direct Finance    Total Portfolio
                           Institutions rated in this category are
Corporate Profile          adjudged to offer moderate degree of safety
BIFC                       for timely repayment of financial obligations.
                           This level of rating indicates that a NBFI is                                                       otal
                                                                                                                              T Assets Vs. Equity
                           under-performing in some areas. Risk factors                                           2500
Board Chairman:            are more variable in periods of economic
Major (Retd.) M.A                                                                                                 2000
                           stress than those rated in the higher
                                                                                                    Million Tk.




Mannan                                                                                                            1500
                           categories. These entities are however,
Managing Director:         considered to have the capability to                                                   1000
Mr. Ansar Uddin Ahmed      overcome the above-mentioned limitations.
                           Short-term rating indicates satisfactory                                               500
                           liquidity and other protection factors qualify                                             0
Total Assets:              the NBFI to be at investment grade. Risk                                                           2005            2004               2003
Tk. 1914.80 million        factors are larger and subject to more
                           variation.                                                                                                         Year
Shareholders’ Equity:                                                                                                          otal
                                                                                                                              T Asset                   Equity
Tk. 210.91 million         02.       COMPANY PROFILE

                           BIFC is a second generation Non-Banking                                                 R                      rofit illion
                                                                                                                    evenue Vs. After Tax P (M Tk.)
Credit Portfolio:
                           Financial Institution (NBFI) incorporated on
Tk. 1411.16 million                                                                                         200                                                   50
                           August 10, 1996 as Public Limited Company
                           under Companies Act-1994. The company                                            150                                                   40
                                                                                              Revenue




                           received license from Bangladesh Bank                                                                                                  30
                                                                                                                                                                         Profit




                                                                                                            100
                           under Financial Institutions Act-1993 and                                                                                              20
                           started its operation on March 2, 1998. BIFC                                       50                                                  10
                           is a joint venture initiative of Five Continents                                       0                                               0
                           Credit Ltd. (FCCL) of Hong Kong, Ocean
                                                                                                                          2005         2004           2003
                           Garments Ltd. (OGL) of Cambodia, Tees Mart
                           Inc. (TMI) of USA and local sponsors. OGL                                                                   Year
                           offloaded its entire holdings to TMI of USA in
                                                                                                                          Revenue                  rofit
                                                                                                                                                  P after Tax
      Page 1 of 1          2004.