January 2, 2003	Thursday	Shawwal 28, 1423

KARACHI, Jan 1: JCR-VIS credit rating company has reaffirmed the medium to long term and short term entity ratings of Grays Leasing Ltd at triple B plus and A-2 respectively. The outlook on these ratings is stable, says a press release.

These ratings have been assigned considering the company’s strong sponsor support reflected by injection of capital to comply with the minimum capital requirement prescribed by the Securities and Exchange Commission of Pakistan, higher efficiency compared to the peers, sustained operating profitability for the past few years and capacity to take up additional debt indicated by low debt leverage.

The ratings also take into account that the company has been constrained by size to diversify its sources of income while ability to tap funds from a variety of sources needs to be demonstrated.

“JCR-VIS will closely monitor GLL’s endeavours to maintain asset quality, profitability and efficiency levels along with expansion of the asset base in the scenario of increased competition from commercial banks and shrinking spreads in the leasing sector.”