Press Release

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

Karachi, July 16, 2013: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of NBP Leasing Limited (NBPL) at ‘A+/A-1’ (Single A Plus/A-One). Outlook on the assigned ratings remains ‘Positive’.

Ratings derive strength from the ownership structure of NBPL, with its sponsor being National Bank of Pakistan (NBP); the second largest bank of Pakistan in terms of deposit base and rated ‘AAA’ (Triple A) by JCR-VIS. Given the resources available with NBP, the company’s access to funds is expected to remain strong.

Net equity of NBPL stood higher than the minimum capital requirement for leasing companies. While there has been increase in borrowings utilized by the company on a timeline basis, debt leverage remains low. Moreover, the management is projecting decrease in borrowings level by year-end as liquidity released from maturing PIBs will be channeled into lending activities.

Growth has been witnessed in the core leasing activities of the institution, with disbursements until Jun’13 exceeding the target for half year. With fresh accretion in NPLs, portfolio quality indicators depicted some weakening in 2012. Management remained active in recoveries against delinquencies and no new NPLs were reported in 1Q’13.

Revenues from core operations depicted an increase in 2012. Nevertheless profit for the year declined on account of higher finance cost, revised provisioning criteria and lower income from other operating activities. Effective utilization of funds in income generating avenues is necessary to generate the desired return, going forward.

For further information on this rating announcement, please contact the Mr. Javed Callea (Ext. 501) or Ms. Sobia Maqbool, CFA (Ext: 604) 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 2013 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