The Pakistan Credit Rating Agency Limited
05-Apr-18
Analyst
Ayesha Qasim
ayesha.qasim@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Corporate Rating Methodology | Jul-17
- Methodology | Correlation between long-term and short-term rating scale | Jun-17
- Methodology | Holding Companies | Jun-17
Related Research
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PACRA Assigns Initial Entity Ratings to TPL Corp Limited (Previously known as TPL Trakker Limited)
| Rating Type | Entity | |
|
Current (05-Apr-18 ) |
||
| Action | Initial | |
| Long Term | A | |
| Short Term | A1 | |
| Outlook | Stable | |
| Rating Watch | - | |
As a holdco, TPL Corp Ltd (TPLC) has a diverse pool of investments. The group started its journey with tracker and insurance business. The tracker business remains amongst the top players of the sector. General insurance business made significant strides in the auto business and is now catering to the full spectrum of insurance business including fire, marine, travel etc. TPL Properties Ltd is operating a stable business with its flagship property enjoying 100% occupancy. TPL Life Ltd is offering a full suite of health and life insurance products and is building a portfolio in micro and mass retail segments. TPL Maps (Pvt) Ltd is the only licensed maps company in Pakistan and offers solutions in mapping and navigation segments. TPL Rupiya (Pvt) Ltd is an e-payments company which facilitates payments via customer’s bank account, mobile wallet or mobile phone account and is a service provider to Lahore Transport Company (LTC).
TPLC has lately assimilated the HoldCo character. This is expected to evolve with more structural interaction and oversight of its investment portfolio. The management has plans to adhere to a defined dividend policy from subsidiaries. Going forward, cash liquidity of TPLC remains important. TPLC has a bond in issuance which the Company plans to repay via equity injection.
About
the Entity
TPLC is listed on PSE. The company was previously operating as TPL Trakker Ltd and in addition to holding investments in the TPL Group companies it included certain business operations. The vehicle tracking and maps business are now retained in 100% owned subsidiaries of TPLC namely TPL Trakker Ltd and TPL Maps (Pvt) Ltd as detailed above. TPLC now focuses on its core function of group holding company.
The Board consists of eight directors, including CEO, Mr. Ali Jameel, a chartered accountant from England & Wales. He has spearheaded the growth of the TPL Group and possess diversified experience in managing various business ventures. He is supported by an able management team.