PACRA Maintains Entity Ratings of TPL Corp Limited

The ratings reflect TPL Corp Limited's 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 the Holding Company. TPL Insurance, a stable entity, is a dividend generating investment on the Corp’s book. TPL Trakker Limited and TPL Properties Limited continues to load more debt, however, remains prominent player in respective sectors. TPL Life Insurance Limited provides complete health and life insurance products. TPL Maps (Pvt) Limited, the only licensed company in Pakistan for mapping and navigation solutions. TPL Rupiya (Pvt) Limited facilitates payments.
On standalone basis, TPL Corp would add more debt on its balance sheet. This, coupled with the rising interest rate scenario and higher finance cost, could exert pressure on the financial profile of the Company and its repayment ability. Resultantly, coverages of TPL Corp are constrained and could face liquidity pressure due to it's dependence on dividend income from underlying investments. The Company intends to issue another debt instrument, Islamic Commercial Paper (ICP), to meet financing requirements of its subsidiaries/associated companies. The ratings take comfort from demonstrated support of the sponsors and their ability to raise funds. Moreover, built in covenants for timely ICP and TFC payment including commitment from the Company to have sufficient liquidity at the time of repayment, remains imperative.
The rating depends on the performance of existing strategic investments and execution of their envisaged business strategies. Timely and successful issuance of Islamic Commercial Paper and materialization of divestment in underlying portfolio to improve the Company’s liquidity position are critical for the ratings. Any significant delay in these initiatives will impact the ratings negatively. Strong governance framework remains beneficial for the ratings.

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%). 6% shares are held by foreign companies and financial institutions. Remaining shares are owned by the general public.