The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (07-October-2006)
   

PACRA Places Ratings of Network Leasing Corporation Limited on RatingWatch

 

 
Analyst
Shahzad Saleem
(+92-42-586 9504)
shahzad@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 ratings of Network Leasing (Long-term: BBB, Short-term: A3) have been placed on RatingWatch with negative implications. This rating action is based on the emerging uncertainty casting doubt about the company’s ability to continue as a going concern. This situation has developed due to substantial erosion in equity emanating primarily from exceptional losses in the company’s investment portfolio. The company has also temporarily suspended lease disbursements.

The management is working on a plan to raise the equity of the company to PKR 500mln and to undertake investment-banking services. Meanwhile, PACRA is closely monitoring related developments and is in the process of detailed review; and final ratings would be notified thereafter.
 
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.