The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (18-February-2005)
    PACRA Upgrades The Long-Term Rating Of First Fidelity Leasing Modaraba
 

 
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 upgraded the long- term rating to ‘A-' (Single A minus), while maintaining the short-term rating at ‘A2' (A two) of First Fidelity Leasing Modaraba (FFLM). These ratings denote a low expectation of credit risk and a strong capacity for timely payment of financial commitments.

The ratings reflect FFLM's strengthened risk absorption capacity, mainly emanating from substantially improved asset quality and adoption of low risk growth strategy based on a low-leveraged capital structure. The ratings also take into account diversified sources of revenue, an outcome of recent acquisition of a brokerage business and focus on property investment, which are likely to add sustainability to income, going forward.

About the Modaraba: FFLM, listed on all the three stock exchanges of the country, was established in 1991 and is managed by Fidelity Capital Management (Pvt.) Limited (FCML), which is part of the Crescent Group. The Crescent Group is one of the well-known corporate groups in Pakistan with diverse interests both in manufacturing and financial services.

The management, subsequent to the merger of First Hajvery Modaraba and Fidelity Securities (Pvt.) Limited, has revisited its strategy and identified three main areas for its operations namely leasing, brokerage business and asset (property) management.
 
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.