The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (12-February-2007)
    PACRA Maintains the Ratings of
Askari Leasing Limited (ALL)
 

 
Analyst
Talal Naeem
(+92-42-586 9504)
talal@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 entity rating at “A+” (Single A plus) and the short-term rating at “A1” (A one) of Askari Leasing Limited (ALL). These ratings denote a low expectation of credit risk and a strong capacity for timely payment of financial commitments.

The ratings reflect ALL’s ability to sustain performance in a competitive operating environment while maintaining its asset quality. The management is cognizant of increasing pressure on the company’s profitability owing to squeezing spreads, and, while improving the spread management, it intends to follow aggressive volume expansion to augment its revenues. At the same time, ALL has identified the need to strengthen its information systems to manage increasing business volumes and the management is devising a comprehensive strategy in this regard.

About the company: ALL, incorporated in August 1993 and listed on all three stock exchanges, is majority owned by Army Welfare Trust (AWT). AWT was established in 1971 and has over the years evolved into a large business conglomerate of the country, with business interest in sugar processing, textiles, real estate development, commercial banking, leasing, cement, general insurance and travel services. Currently, the Board of Directors of ALL includes five nominees of AWT, while one director each is a nominee of the National Investment (Unit) Trust, State Life Insurance Corporation of Pakistan and Mehmood Group.

ALL continued to be the second largest leasing company, in terms of both NIL and total assets along with its relatively extensive branch network. The current chief executive, holding this position since 2003, has extensive experience in the financial sector. He continues to effectively pursue the corporate agenda of aggressive growth while implementing a decentralized model for operations.
 
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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