The Pakistan Credit Rating Agency (PACRA) has maintained the long- term rating at ‘BBB' (Triple B) and the short-term rating at ‘A3' (A Three) of Network Leasing Corporation Limited. These are applicable to the senior unsecured creditors of the entity. The secured TFC issue of PKR 100mln, due for final redemption in October 2005, has been assigned a short-term rating of ‘ A2' (A Two). These ratings denote a low expectation of credit risk and an adequate capacity for timely payment of financial commitments.

The ratings recognize the improved access to lower cost funds and steady growth in its core business, while maintaining the asset quality. Although the company remains well positioned to maintain growth in its identified market niche, the performance will remain constrained by relatively high operating costs and the large proportion of non-earning assets in the total asset mix.

About the company: Incorporated in 1993, Network Leasing Corporation Limited (NLC) commenced operations in January 1995 and is listed on all the three stock exchanges in the country. The company is principally engaged in lease financing of income generating assets to micro and small enterprises and is currently operating from its head office in Karachi and branches, one each, in Lahore and Peshawar. Capitalising on its experience in microfinancing, the management of NLC in collaboration with Jahangir Siddiqui & Company Limited has established a microfinance bank – Network Microfinance Bank Limited – which is expected to commence operations in the near future.

The Board of Directors of NLC consists of seven members, of which two are full time working directors. The managing director – a Chartered Accountant – is assisted by an experienced team of professionals. The sponsoring directors and associates presently hold 52.46% stake in the company's equity. Other shareholders include local financial institutions and the general public.