PACRA MAINTAINS ENTITY & TFC

RATINGS OF KASB LEASING LIMITED

 

Lahore: January 19, 2004

The Pakistan Credit Rating Agency (PACRA) has maintained the long-term entity rating of KASB Leasing Limited (KLL) at 'BBB+' (Triple B plus), and the short-term rating has been maintained at 'A2' (A Two). These ratings are applicable to senior unsecured creditors, and denote a low expectation of credit risk, and an adequate capacity for timely payment of financial commitments. The rating of the secured TFC issue worth PKR 200mln has been maintained at 'A-' (Single A Minus). This rating denotes a low expectation of credit risk, and a strong capacity for timely payment of financial commitments.

The assigned ratings reflect an improvement in the company's performance from core operations. While there has been an increase in the proportion of the impaired portfolio, this had no material impact on the company's risk absorption capacity owing to an adequate capital structure. The ratings are placed on RatingWatch due to the upcoming merger of KLL with KASB Bank.