PACRA Maintains Entity Ratings of TPL Corp Limited

The rating reflects TPL Corp Limited's ("TPL Corp" or "the Company") diverse pool of investments and its evolving structure as a Holding Company. TPL Group entered in the business arena through vehicle tracking and insurance business. The existing investment portfolio is still evolving and has yet to establish consistent revenue stream for TPL Corp. TPL Insurance remains a stable investment on the Company's book, however, did not generate substantial dividends for TPL Corp . TPL Trakker Limited and TPL Properties Limited remain prominent player in respective sectors. However, they are adding debt and yet to generate sizeable dividends. TPL Life Insurance Limited provides complete health and life insurance products. TPL Maps (Pvt) Limited is the only licensed company in Pakistan for mapping and navigation solutions. TPL Rupiya (Pvt) Limited facilitates cashless payments. Going forward, merger of TPL Maps and TPL Rupiya into TPL Trakker will bring in synergy at Group level.
On standalone basis, TPL Corp tends to consolidate and repay debt on its balance sheet. The Company is looking to divest its stake in TPL Insurance and TPL Trakker through strategic sales to generate cash in the Company. Timely materialization of these initiatives is critical. The Company has issued another debt instrument, Islamic Commercial Paper (ICP) to meet financing requirements of its subsidiaries/associated companies. The coverages may remain constrained due to limited dividend income. The rating takes comfort from demonstrated support of the sponsors and their ability to raise funds. Moreover, built in covenants for timely ICP payment including commitment from the Company to have sufficient liquidity at the time of repayment, remains imperative. Strong governance framework remains beneficial for the ratings
The rating depends on the performance of existing strategic investments and execution of their envisaged business strategies. Timely and successful payment of debt instruments is pre-eminent for the ratings. Maintenance of adequate resources for repayment remains critical.

About the Entity
TPL Corp Limited (formerly known as TPL Trakker Limited) is a public limited company listed on Pakistan Stock Exchange. The Company is principally engaged in making investments in Group and other companies. TPL Trakker Limited was incorporated in Pakistan on December 04, 2008 as a private limited company and converted into public company in 2009 and got listed on Pakistan Stock Exchange Limited on July 16, 2012. The name of the Company has been changed to TPL Corp Limited w.e.f. November 24, 2017.
TPL Corp is majorly owned by its parent company, TPL Holdings (Pvt.) Limited (62.41%). 6% shares are held by foreign companies and financial institutions. Remaining shares are owned by the general public.