Credit Rating Report on Bangladesh Industrial Finance Company
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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: email@example.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.