KARACHI, Oct 13: JCR-VIS credit rating company Ltd has upgraded the medium to long term entity rating of Pak-Gulf Leasing Company Ltd (PGL) to triple B plus with stable outlook, says a press release.

The upgrade takes into consideration the successful completion of the equity enhancement plan to fulfil the SECP’s minimum equity requirement.

“The rating incorporates the stringent underwriting procedures followed by the company, which have kept infection under control. Profitability has also improved over the past year due to declining cost of borrowing.”

“Nevertheless, spreads may come under pressure as returns on fresh leases adjust to the low markup environment,” warns the credit rating company.