The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (07-December-2005)
    PACRA Assigns Short-Term Rating of ‘A1’ to the securitized TFC of
Securetel SPV Limited
 

 
Analyst
Muhammad Usman Majeed
(+92-42-586 9504)
usman@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 Pakistan Credit Rating Agency (PACRA) has assigned a short-term rating of ‘A1’ (A One) to Securetel SPV Limited’s Securitised TFC-A of PKR 840mln. This rating denotes obligations supported by a strong capacity for timely repayment.

With ten installments out of a total of twelve having already being paid on schedule, the capacity for timely repayment relative to the reduced outstanding TFC obligation is considered strong on the back of substantially enhanced revenues of Paktel Limited. Furthermore, as the tenor of the TFCs expires within the ensuing six months, a short-term rating has been notified.

About the Issuer: With the principal objective of acting as SPV to facilitate true sale securitization, Securetel SPV Limited, a non bankruptcy-remote special purpose vehicle (SPV), was incorporated on June 25, 2002 as a public limited company under the Companies (Asset Backed Securitisation) Rules, 1999.

Securetel SPV Limited has acquired an interest in future receivables of Paktel Limited (PTL), paying the sale price by issuing TFCs. The TFC-A series is listed on Lahore Stock Exchange and carries profit based on SBP discount rate +200bps with a cap of 16% p.a. and floor of 12% p.a. for the first year and 11.50% p.a. for the last two years. These are redeemable in twelve quarterly installments (principal + interest) of which ten installments have been paid. The remaining outstanding principal of TFC A series amounting to PKR 140mln plus interest thereon is payable by March 27, 2006.

About the Originator: PTL, the originator, was incorporated in 1989. It was a joint venture between Cable & Wireless of UK and Hassan Associates till Millicom International Cellular, S.A. (MIC) acquired 98.9% of the shares in November 2000. MIC, a Luxembourg-based company listed on NASDAQ national market and Luxembourg stock exchange has been rated B+ (B Plus) by Standard & Poor’s. MIC’s portfolio of assets comprises 16 cellular operations in 15 countries, focusing on Asia, Latin America and Africa.

 
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.

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