LAHORE, April 28: The Pakistan Credit Rating Agency (Pacra) has maintained entity ratings of Askari Leasing Ltd. (ALL) at single A plus for long-term and single A one for short-term.

A press announcement issued by Pacra said on Monday that the assigned ratings denoted a high quality with low expectation of credit risk and a strong capacity for timely payment of financial obligations. These ratings are applicable to the senior unsecured creditors of the company.

The ratings, according to the announcement, reflect the improving trend both in the overall performance and in the risk profile of the lending portfolio through enhanced provision coverage for potential lease losses. The ratings also recognize the increasing risk absorption capacity emanating from the enlarging equity base and the management’s successful diversification strategy of asset deployment.

“While ALL has been continuing to grow in size, further growth could be constrained by the borrowing capacity. However, the management is considering various measures to overcome this constraint,” the announcement said.