The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (25-September-2006)
   

PACRA Assigns Entity Ratings to
First Capital Equities Limited (FCEL)
 

 
Analyst
Maimoon Rasheed
(+92-42-586 9504)
maimoon@pacra.com

 

 

 









 

 

 

 

 

Disclaimer
This press release is transmitted to you for this sole purpose of dissemination through your newspaper/magazine/agency. The press release may be used by you in full or in part without changing the meaning or context thereof but with due credit to PACRA. However, PACRA has the sole right of distribution of its press releases for consideration or otherwise through any media.

  

The Pakistan Credit Rating Agency (PACRA) has assigned a long-term rating of “A” (Single A) and a short-term rating of “A1” (A One) to First Capital Equities Limited (FCEL). These ratings denote a low expectation of credit risk emanating from strong capacity for timely payment of financial commitments.

The ratings reflect FCEL’s consistently good performance emanating from its core brokerage business. The company’s distinctive strategy of targeting retail investors adds stability to its revenues. In line with its strategy, the company is establishing an extensive branch network, which would provide access to a countrywide large number of customers. The ratings also take into account FCEL’s overall risk management systems and improving IT infrastructure.

About the Company: FCEL, incorporated in 1995, is listed on the Lahore Stock Exchange and is a subsidiary of First Capital Securities Corporation Limited (FCSC) (67.4% shareholding at end-05). FCSC, a leading investment and financial services company and listed on all three stock exchanges of the country, serves as the main holding company for the WorldCALL/First Capital Group. The Group has interest in a number of companies that are offering financial, insurance, media & telecommunication, and real estate services. The main sponsors of the Group include Mr. Sulieman Ahmed Said Al-Hoqani (20% direct shareholding in FCEL as at end-05) – an Omani investor with over US$ 130mln investments in Pakistan – and Mr. Salmaan Taseer and associates. FCEL benefits from the franchise value emanating from its association with the country’s well-known WorldCall/First Capital Group.
 
The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity.

PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings.

PACRA's opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.

 

    
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