The Pakistan Credit Rating Agency Limited
17-Sep-19
Analyst
Zeeshan Munir
zeeshan.munir@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Corporate Ratings | Jun-19
- Methodology | Correlation Between Long-Term And Short-Term Rating Scale | Jun-19
- Criteria | Rating Modifier | Jun-19
Related Research
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PACRA assigns Initial Ratings to Sonya Travels (Pvt.) Limited
| Rating Type | Entity | |
|
Current (17-Sep-19 ) |
||
| Action | Initial | |
| Long Term | BBB | |
| Short Term | A2 | |
| Outlook | Stable | |
| Rating Watch | - | |
Sonya Travels is engaged in the provision of travel services. The company derives revenues primarily from two business segments, wherein which it procures tickets in bulk and then undertake sales, and secondly through the sale of tickets on a day to day basis. The company earns profitability based on the airlines' commission and incentives and also heightened margins on bulk procurement. The company enhances its yield through bulk procurement and also via channelizing of tickets booking.
The company is mainly owned by two key shareholders. The Sponsors of the company have an oversight mechanism to ensure the governance of the company. One of the sponsors may also be joining the board. The financial structure is adequate. The leverage is high in comparison to the equity base and funded and non funded leverage indicators. The financial risk of the company is cushioned by sizeable profitability as reflected in the accompanying financial statements.
The ratings are dependent on the sustained volumes and margins. Financial discipline including coverages and governance is considered essential.
About
the Entity
Sonya Travels is a private limited company. The company is equally owned by Mr. Tariq Rahim and Mr. Ali Rahim. Sonya Travels has a history of more than two decades, having business in the fields of Air Travel and Tourism. In the year 2018, the company enjoyed the privilege of entertaining more than half a million tourists to and from various parts of the world. Sonya Travels is one of the largest Air travels, Tours and Umrah company having more than 12 branches nationwide. The company also has footings in UAE and KSA.
The company has a six member board of directors. The CEO of the company is Ms Sarosh Rahim while the business affairs are looked after by Mr. Zamir Ahmad. Both of them are professionals with experience of more than two decades.