The Pakistan Credit Rating Agency (PACRA) has upgraded the long-term entity rating of ORIX Leasing Pakistan Limited (OLP) to ‘AA+' (Double A Plus), while maintaining the short-term rating at ‘A1+' (A One Plus). These ratings, applicable to senior unsecured creditors of the company, indicate a very low expectation of credit risk and a very strong capacity for timely payment of financial commitments.

OLP's first tranche of TFCs (PKR 742mln), due for final redemption in April 2005, has been assigned a short-term rating of ‘A1+' (A One Plus) and the rating of second tranche of TFCs (PKR 758mln) is maintained at ‘AA+' (Double A Plus).

The ratings reflect OLP's demonstrated ability to sustain its performance and low-risk asset profile, while maintaining its leadership in the sector. The company continues to follow a policy of diversification and product innovation. The ratings also recognize the outstanding professional management team, with a track record of successfully implementing well-designed business plans. The implicit support of ORIX Corporation, Japan is also a key factor.

About the TFC Issues: The first tranche of PKR 742mln was issued in April 2001 for a tenor of 4years carrying interest at 14% payable semi-annually. The second tranche of PKR 758mln was issued in August 2002 for a tenor of 4years with bullet payment of principal with a coupon rate of SBP discount plus 2% with a floor of 10% and cap of 13% payable semi-annually. These are secured by way of registered charge over specific leased assets and their related receivables.

About the company: ORIX Leasing Pakistan Limited (OLP), the largest leasing company in the country, commenced operations in 1987. It has reasonable geographical coverage through its 14 independent branches and desks at 11 UBL branches. ORIX Corporation, Japan, OLP's major shareholder, has a consolidated asset base exceeding US$ 51bln as at September 30, 2004 with operations in 24 countries.