PACRA ASSIGNS 'A' TO THE PROPOSED TFC OF

TRUST LEASING CORPORATION LIMITED (TLC)

 

Lahore: February 03, 2003

The Pakistan Credit Rating Agency (PACRA) has assigned an instrument rating of 'A' (Single A) to TLC's proposed TFC issue of PKR 300mln (including a greenshoe option of PKR 50mln). The long-term entity rating has been upgraded to 'A-' (Single A Minus) and the short-term rating is maintained at 'A2' (A Two). These ratings denote a low expectation of credit risk and a strong capacity for timely payment of financial commitments.

TLC's ratings reflect the increasing risk absorption capacity and the ongoing process of improving risk profile of the loan portfolio through provisioning and settlement of NPLs. While FY03 performance will be pressurised by provisioning requirement, the potential risk of loss is expected to be substantially mitigated. Thereafter, the net earnings, with maintained asset quality, are projected to register significant increase. However, these can be impacted by falling returns due to increasing competition and declining interest rates.