Press Release

JCR-VIS Reaffirms Entity Ratings of NBP Leasing Limited
 

Karachi, August 10, 2009: JCR-VIS Credit Rating Company Limited has reaffirmed the entity ratings of NBP Leasing Limited (NBPLL) at ‘A/A-2’ (Single A/A-Two). The outlook on the medium to long term rating is ‘Stable’.

NBPLL is a wholly owned subsidiary of National Bank of Pakistan and benefits significantly from this association in terms of access to funding, leading to a sound liquidity profile and capitalization. During 2008, the company phased out its discounting business. In view of the economic turmoil, a cautious stance was also adopted towards leasing activity while there was a deliberate reduction in the investment portfolio. Proceeds from sale of investments and maturity of leases were utilized to reduce borrowings leading to shrinking of asset base and leverage.

Although portfolio quality of fresh leases disbursed during FY08 has remained intact, there has been a significant increase in overall delinquency rates with management currently focusing on recoveries. Lower business activity and increasing provision requirement against financing and investments have adversely affected profitability. Business growth is required to achieve profitable operations; trends in this regard will be monitored by JCR-VIS.

For further information on this rating announcement, please contact Mr. Safdar Kazi (Ext. 501) or Ms. Sabeen Saleem (Ext. 510) at 35311861-70 (10 lines) or fax to 35311873.



Faheem Ahmad
President & CEO

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Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited (JCR-VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. JCR-VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2009 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited