The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (04-September-2006)
   

PACRA Assigns Entity Ratings to
Trakker (Pvt) Limited (TPL)
 

 
Analyst
Moin Khalid
(+92-42-586 9504)
moin@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 credit rating of “A-” (Single A Minus) and a short-term rating of “A2” (A Two) to Trakker (Pvt.) Limited. The ratings denote a low expectation of credit risk emanating from a strong capacity for timely payments of financial commitments.

The ratings reflect the company’s leadership position in the vehicle-tracking service sector, emanating from its successful track record, superior technology platform, and quality of human resource and systems and processes. The performance of the company is expected to improve on the back of robust demand for vehicle tracking services and targeted reduction in operating costs. The financial leverage of the company is expected to remain relatively high in the near-term due to financing requirements for capital expenditure and company’s recent strategic investments. However, it is expected to decline with augmentation in the equity base through improved profitability, going forward.

About the company: Trakker (Pvt.) Ltd. (TPL) is Pakistan’s first and the largest vehicle tracking and fleet management company, operational since 2000. With branches in six cities, the company has the nationwide network coverage extended to 600 cities. Digicore Group, the company’s international joint venture partner based in South Africa, is primarily into fleet management for the last 20 years and is also renowned for manufacturing quality telematics products. The group has an extensive international presence through partners in Europe, mainly UK, Brazil, Nigeria, The Middle East and Kenya. TPL diversified its business in Jul 05 by launching Trakker Direct Insurance Ltd. – Pakistan’s first call centre based motor insurance company. The company, in joint venture arrangements with two leading business groups of UAE, has also recently established a vehicle tracking and fleet management company – Trakker Middle East LLC – in Abu Dhabi for capturing the markets of UAE and other GCC countries.
 
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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