The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (03-January-2005)
    PACRA Maintains The Ratings of Askari Leasing Limited
 

 
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 maintained the long- term rating at ‘A+' (Single A plus) and the short-term rating at ‘A1' (A one) of Askari Leasing Limited (ALL). These are applicable to the senior unsecured creditors of the company. These ratings denote a low expectation of credit risk and a strong capacity for timely payment of financial commitments.

The ratings reflect ALL's sustained performance despite an increasingly competitive operating environment. The ratings also take into account the high gearing as compared to peers and its continuing impact on the risk absorption capacity.

About the company: ALL was incorporated in August 1993 and is listed on all three stock exchanges of the country. AWT is the majority shareholder of ALL since its inception, followed by financial institutions and individuals. AWT was established in 1971 and has over the years evolved into one of the largest business conglomerates of the country, with business concerns in sugar processing, textiles, real estate development, commercial banking, leasing, cement, general insurance and travel services. In the financial sector, AWT is represented by a leading commercial bank, a leasing company and a general insurance company. The Board of Directors of ALL includes seven nominees of AWT, while one director is nominated by the National Investment Trust.

ALL continued to be the second largest leasing company in FY04 in the leasing sector, in terms of both NIL and total assets, with a market share of over 13% in terms of NIL, and with a relatively extensive branch network. In the last couple of years, that is, with the assumption of office by the current chief executive, the branch operations have been strengthened through decentralization, which ensures greater synergy with Askari bank branches.

 
 
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.

 

    
ceviche