The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (30-January-2006)
    PACRA Maintains the Entity Ratings of ORIX Leasing Pakistan Limited
 

 
Analyst
Muhammad Usman Majeed
(+92-42-586 9504)
usman@pacra.com

 

 

 








 

 

 




 

 

 

 

 

 

Disclaimer
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The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term entity ratings of ORIX Leasing Pakistan Limited (OLP) at “AA+” (Double A plus) and “A1+” (A one plus) respectively. These ratings indicate a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.

OLP’s second tranche of TFCs (PKR 747mln), due for final redemption in August 2006, has been assigned a short-term rating of “A1+”.

The ratings reflect OLP’s sustained market leadership and robust financial performance, backed by a low-risk asset profile. The company’s continued policy of diversification and product innovation augurs well for sustaining performance levels in a highly competitive environment. 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 company’s TFC - first tranche of PKR 742mln has been fully redeemed in April 2005. The second tranche of PKR 747mln was issued in August 2002. The issue has a tenor of 4years with bullet payment of principal, carrying a coupon rate of SBP discount plus 2% with a floor of 10% and cap of 13%, payable semi-annually. The issue is 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. The company’s geographical coverage has been steadily increasing over the years, currently comprising 29 offices in 26 cities. OLP has invested in the five leasing joint-ventures of ORIX group within the MENA and central Asian regions, and an investment bank in Pakistan, with participation in management of the investee companies. OLP’s major shareholder, ORIX Corporation, provides technical support and policy guidelines. With a consolidated asset base of around US$ 56bln as at September 30, 2005, ORIX Corporation has operations in 24 countries.

 
 
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