The Pakistan Credit Rating Agency Limited
03-Apr-20
Analyst
Maryam Ijaz
maryam.ijaz@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
Related Research
This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA
PACRA assigns Initial Entity Ratings to Secure Logistics Group (Private) Limited
| Rating Type | Entity | |
|
Current (03-Apr-20 ) |
||
| Action | Initial | |
| Long Term | A- | |
| Short Term | A2 | |
| Outlook | Stable | |
| Rating Watch | - | |
Secure Logistics Group (Private) Limited is a mid-sized company engaged in logistics, vehicle management and tracking services. The ratings reflect increased business activity as the company scales up its operations while generating improved profitability. The company has received sizeable equity injection from JSPE Fund, Karandaaz Pakistan and Saudi Bugshan Group in the form of convertible and common equity. This has considerably augmented the Company’s financial strength. The equity funding has also enabled the Company to reduce its borrowing while simultaneously facilitating expansion plans.
The sector is, however, constrained by the inherent limitations pertaining to the logistics industry emanating from the fragmented nature of the sector and dependence on economic activity. The company aims to venture into new segments which will diversify the revenue base while increased business in the form of new clients is on the horizon. The growth path is defined and ambitious, however, the management is confident to achieve it.
With the introduction of new investors, the company intends to leverage its expanded board to improve the corporate governance structure. Going forward, the sound control environment is expected to improve further.
The ratings are dependent on sustained business profile while ensuring profitability, enhanced corporate governance and control environment.
About
the Entity
Secure Logistics Group (Private) Limited (SLG) is a privately owned company, providing logistics, fleet management and tracking services to leading corporates, banks, insurance/ leasing firms and foreign missions.
The Company’s sponsors are seasoned professionals with exposure to private and public sectors. Mr. Pervaiz Khan (Chairman) has three decades experience in Banking and Energy industry. He holds MBA and MIA degrees from Columbia University, USA. Mr. Gulraiz Khan (Chief Executive Officer is a former Army officer with ten years experience in managing these businesses. He holds a Masters in strategy from USA and MBA from London Business School. They are assisted by qualified and experienced management team.