KARACHI: JCR-VIS Credit Rating Company has reaffirmed the medium to long-term entity rating of NBP Capital Ltd (NBPCL) at ‘A’ with a stable outlook. According to a press release, short-term rating has also been reaffirmed at ‘A1’. Being a wholly-owned subsidiary of National Bank of Pakistan (NBP), the ratings assigned to NBPCL draw support from the parent’s strong franchise value. Capitalisation and liquidity indicators are expected to remain strong. NBPCL has exhibited growth in its financing portfolio during the last year. Core profitability indicators were, however, depressed on account of higher cost of funds. This trend has been experienced throughout the NBFCs sector. Some recovery has been posted in the first quarter of the current year though improving profitability from core operations may remain challenging as the environment becomes increasingly competitive.