Karachi, June 30, 2011: JCR-VIS Credit Rating Company Limited has upgraded the entity ratings of NBP Leasing Limited (NBPLL) to ‘A+/A-1’ (Single A Plus/A-One) from ‘A/A-2’ (Single A/A-Two). Outlook on the assigned ratings is ‘Stable’.
Given the increase in pace of lease disbursements subsequent to August 2010, net leasing portfolio of the company has depicted an increase. Profitability of the company has improved on account of lower incremental provisioning against doubtful receivables, with the company already having fully provided against NPLs in 2009. Quality of fresh exposures assumed is largely considered sound and passage of time will further test the underwriting quality.
At present, operations are funded entirely through equity and leverage is expected to remain low over the rating horizon. NBPLL is a wholly-owned subsidiary of National Bank of Pakistan. Ratings draw support from the financial strength of the sponsoring institution, the largest commercial bank in the country.
For further information on this rating announcement, please contact the undersigned (Ext. 408) or Ms. Sobia Maqbool, CFA (Ext: 506) at 35311861-70 or fax to 35311872-3.
Jamal Abbas Zaidi
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.
JCR-VIS Credit Rating Company Limited. All rights reserved.
Contents may be used by news media with credit to JCR-VIS.