The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (04-January-2006)
    PACRA Maintains Credit Ratings of Network Leasing Corporation Limited
 

 
Analyst
Sumaira Fazal
(+92-42-586 9504)
sumaira@pacra.com

 

 

 










 

 


 

 

 

 

 


 


Disclaimer
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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 ratings denote a low expectation of credit risk and an adequate capacity for timely payment of financial commitments.

The ratings reflect NLC’s continued strategy of steady growth, while keeping control over credit risk, as reflected in its adequate asset quality. The company’s focus on micro leasing renders high cost structure and hence, somewhat constrained profitability. This is due largely to the socially motivated strategy of the sponsors to use leasing as a vehicle to contribute towards poverty alleviation. The core focus, therefore, remains on micro leasing for employment generation and enhancement of family incomes.

About the company: Network Leasing Corporation Limited (NLC), commencing operations in 1995, has completed a decade of successful operations. The company is listed at all bourses and is principally engaged in lease financing of income generating assets to micro and small enterprises. The company is currently operating from its head office in Karachi and branches, one each, in Lahore and Peshawar. It is supported by international organizations like Swiss Agency for Development and Co-operation (SDC), Asian Development Bank and World Bank for mobilizing funds.

The Board of Directors of NLC consists of seven members, all having extensive experience in the business. The managing director – a Chartered Accountant – is assisted by an experienced team of professionals.

Capitalising on its experience in micro financing, the management of NLC in collaboration with Jahangir Siddiqui & Company Limited established a micro finance bank – Network Microfinance Bank Limited in 2004, which is now fully operational. The bank - listed on Karachi stock exchange – has also started mobile branch banking in order to deliver financial and banking services at the doorsteps of underprivileged communities.
 
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