Press Release

JCR-VIS Maintains Entity Ratings of NBP Leasing Limited at A+/A-1

Karachi, July 24, 2012: JCR-VIS Credit Rating Company Limited has maintained the entity ratings of NBP Leasing Limited (NBPL) at ‘A+/A-1’ (Single A Plus/A-One). Outlook on the assigned ratings has been revised from ‘Stable’ to ‘Positive’.

Ratings derive comfort from the financial strength of the sponsoring institution, National Bank of Pakistan (NBP), which is one of the largest commercial bank in Pakistan, having asset base of over Rs. 1 trillion. There exists a strong basis for expecting parent support in times of stress, given the resources available with the parent entity.

Core leasing activities of the company have picked pace with net leasing portfolio comprising a higher proportion of total assets over time. While fresh accretion of NPLs has been limited, quality of fresh disbursement will be meaningfully tested over a longer term. Even with growth in revenues, operational profits of the institution have remained at prior year’s level as there has been growth in administrative expenses as well. However, bottom line results were higher in 2011 relative to the preceding year owing to capital gains on sale of investments. So far, NBPL was largely equity financed. The level of borrowings is expected to increase over the coming years, though leverage is projected to remain within prudent limits.

For further information on this rating announcement, please contact the Mr. Javed Callea (Ext. 501) or Ms. Sobia Maqbool, CFA (Ext: 506) at 35311861-70 or fax to 35311872-3.

Jamal Abbas Zaidi
Deputy CEO

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 2012 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