The Pakistan Credit Rating Agency (PACRA) has upgraded the long-term rating to 'A+' (Single A Plus) and has maintained the short-term rating at 'A1' (A One) of Union Leasing limited. These ratings are applicable to the senior unsecured creditors of the entity and denote a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments. The secured TFC issue of PKR 357.1mln, due for final redemption in April 2005, has been assigned a short-term rating of ' A1+' (A One Plus). This rating denotes a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.

The ratings reflect the augmentation in the risk absorption capacity with the enhanced equity base while maintaining robust performance and good asset quality.

About the company: Union Leasing Limited (ULL) was incorporated in October 1993 as a public limited company and started commercial operations in the following year. The company is listed on all the three stock exchanges of the country. The majority shareholding of the company vests in Union Bank Limited.

ULL is currently operating through seven branches, with its head office in Karachi. Despite this small branch network, the leasing company has a nationwide access through forty-four branches of Union Bank. It has maintained close coordination with these branches and has acquired good quality clients through them. Going forward, the Union Bank affiliation will continue to provide ULL an inherent advantage as opposed to stand-alone leasing companies.