PACRA MAINTAINS CREDIT RATING OF

NETWORK LEASING CORPORATION LIMITED

 

Lahore: February 18, 2002

The Pakistan Credit Rating Agency (PACRA) has maintained the long-term credit rating of BBB (triple B) and the short-term rating of A3 (A three) of Network Leasing Corporation. These ratings are applicable to the senior unsecured creditors of the company. The rating for the company's secured TFC issue of Rs.100 million has also been maintained at BBB+ (triple B plus). The ratings denote a low expectation of credit risk and adequate capacity to service financial obligations on a timely basis.

While maintaining the rating, PACRA has taken cognisance of the company's steadily growing earning assets, enhanced provision coverage for potential lease losses and expected positive impact of the planned injection of equity on the company's coverages. The rating decision also factors in the impact of decline in operating performance arising mainly from the demand constraints in NLC's relatively higher yielding core sector of micro and small enterprises.