OUR STAFF REPORTER KARACHI - JCR-VIS Credit Rating Company Limited has reaffirmed the medium to long-term entity rating of 'A (Single A) and short-term rating of 'A-2 (A-Two) to House Building Finance Company Limited (HBFCL), formerly known as House Building Finance Corporation Limited. The rating incorporates strong sponsorship of HBFCL jointly held by the Government of Pakistan (GoP) and the State Bank of Pakistan (SBP). HBFCL also has federal government guarantee against credit lines obtained from SBP that constitute more than 90 per cent of total borrowings, said a press release issued here on Friday. Following the appointment of current chief executive officer, the executive management team has also been strengthened and now comprises well-rounded professionals. During the last year, HBFCL successfully implemented a Voluntary Separation Scheme, which was funded partly by the Federal Government. This is expected to result in cost savings for the company in FY11 and onwards, in addition to creating space to induct professionals. Given the rapidly changing dynamics of business and modern ERP requirements, work on an integrated business application is in process, which is expected to improve data handling and MIS reporting capabilities. While current level of infection in the portfolio is substantial, the management is revising under-writing guidelines to address weaknesses in the previous lending methodology. Portfolio seasoning over time of lending undertaken in the last two years will help quantify the results of this change. So far, fresh accretion of NPLs on a year-on-year basis is substantial.