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LAHORE, Feb 19: The Pakistan Credit Rating Agency has maintained First Grindlays Modaraba’s financial strength rating at “A2” (A two), the highest rating assigned to any modaraba.
A Pacra announcement on Tuesday said the rating reflected the modaraba’s very good asset quality, consistent outstanding performance and continued strong support factor through affiliation with the Standard Chartered group in Pakistan.
Effective this year, Pacra has changed the nomenclature for the rating from Individual Rating to Modaraba Financial Strength Rating. The change is made primarily to fully reflect the methodology of modaraba rating which focuses on the overall financial strength of the modaraba, said the announcement.
ORIX LEASING: Pacra has maintained the entity ratings of Orix Leasing Pakistan at “AA-” (double A minus) and “A1+” (single A plus for the long-term and short-term, respectively.
The entity ratings are applicable to the senior unsecured creditors of the company, said the announcement. The rating of the secured TFC of Rs742 million has been maintained at “AA” (double A). These ratings reflect highest ratings awarded to any company in the leasing sector and denote both a very low expectation of credit risk as well as a very strong capacity for timely payment of financial obligations.
While maintaining the ratings, Pacra has taken cognizance of the company’s sustained market leadership, steady improvement in performance mainly driven by growth in leased assets and diversification in lease products with a continuing low risk profile of the lease portfolio.
The ratings, said the announcement, also recognized the current and expected potential contribution of the offshore joint venture investments, implicit support of Orix’s major shareholder, Orix Corporation Japan — a company with a consolidated asset base exceeding $45 billion as at March 31, 2001 and a pioneer in lease financing in Japan.
The one possible area of concern, said the announcement, is the relatively high gearing of the company. “Going forward, the management’s concentration on expanding its operating lease portfolio as well as developing new avenues for leasing business should hold it in good stead to face increasing competition in the leasing sector,” the announcement added.
Parco ratings: For the 5th consecutive year, Pakistan Credit Rating Agency has maintained the entity ratings of Pak- Arab Refinery Ltd. (Parco) at “AAA” (triple A) and “A1+” (single A one plus) for the long-term and short-term, respectively.
The entity ratings are applicable to the senior unsecured creditors of the company, said an announcement issued here on Tuesday. The rating of the secured TFC of Rs2.5 billion has been maintained at “AAA” (triple A). These ratings, according to Pacra, denote the lowest expectation of credit risk and an exceptionally strong capacity for timely payment of financial commitments. Parco continues to be the only company in Pakistan — out of over 100 entities rated by Pacra — that has been assigned an entity rating of AAA.
Parco — a joint venture between the government of Pakistan (60 per cent) and the Emirate of Abu Dhabi (40 per cent) — is involved in refining, transporting and marketing of various petroleum products including the introduction of unleaded MOGAS in the country.
