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PACRA Maintains Stability Rating of NBP Government Securities Savings Fund

Lahore, September 29, 2022 (PPI-OT):NBP Government Securities Savings Fund (or the ‘Fund’) is a medium risk‐profile fund. The assigned rating reflects moderate strength of the fund’s credit and interest rate risk profile. The Fund had allocated 31% of assets to bank placements mainly in ‘AA+’ banks, ~33.32% in T-Bills whereas ~33.9% in PIBs. The duration of the Fund stood at 183 days at the end Jun’22 (Dec’21: 203 days), exposing the fund to interest rate risk.

The WAM of the Fund stood at 196 days at the end Jun’22 (Dec’21: 222 days), exposing the Fund to moderate credit risk due to investment in PIBs and Govt Securities credit risk is manageable. The top 10 investors possess a concentration of ~65.9% in the fund’s total assets. Therefore, the fund is subject to moderate redemption pressure. Going forward, material changes in the Fund’s asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.

For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com

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