PACRA MAINTAINS CREDIT RATING OF

ORIX LEASING PAKISTAN LIMITED

 

Lahore: February 19, 2002

The Pakistan Credit Rating Agency (PACRA) has maintained the entity ratings of ORIX Leasing Pakistan Limited (OLP) at 'AA-' (Double A minus) and 'A1+' (Single A one plus) for the long-term and short-term, respectively. The entity ratings are applicable to the senior unsecured creditors of the company. The rating of the secured TFC of Rs. 742 mln has been maintained at 'AA' (Double A). These represent the highest ratings awarded to any company in the leasing sector, and denote both a very low expectation of credit risk, as well as a very strong capacity for timely payment of financial obligations.

While maintaining the ratings, PACRA has taken cognisance of the company's sustained market leadership, steady improvement in performance mainly driven by growth in leased assets and diversification in lease products with a continuing low risk profile of the lease portfolio. The ratings also recognise the current and expected potential contribution of the off shore joint venture investments, implicit support of OLP's major shareholder, ORIX Corporation Japan - a company with a consolidated asset base exceeding US$ 45 bln as at 31st March 2001, and a pioneer in lease financing in Japan, providing a variety of financial products and services around the globe - and most importantly, a competent professional management team with demonstrated capability of effective management in a difficult operating environment. The one possible area of concern is the relatively high gearing of the company. Going forward, the management's concentration on expanding its operating lease portfolio, as well as developing new avenues for leasing business, should hold it in good stead to face increasing competition in the leasing sector.