Press Release

VIS Reaffirms Ratings of Grays Leasing Limited

Karachi, December 10, 2019: VIS Credit Rating Company Limited (VIS) has reaffirmed entity ratings assigned to Grays Leasing Limited (GLL) at ‘BB-/B’ (Double B Minus/Single B). The medium to long-term rating of ‘BB-’ denotes that obligations deemed likely to be met. Protection factors are capable of weakening if changes occur in the economy. Overall quality may move up or down frequently within this category. The short-term rating of ‘B’ denotes speculative investment characteristics; liquidity may not be sufficient to ensure timely payment of obligations. Outlook on the assigned rating is ‘Stable’. Previous ratings were announced on December 31, 2018.

Ratings assigned to GLL take into account its weak financial risk profile; the company continues to face challenges of low business volume, limited funding avenues and chronic legacy portfolio of non-performing leases against which recoveries have lately remained minimal; a large part of the same has also remained un-provided. Albeit to a small extent, the company continues to withdraw funding support from its associated concern and the Chief Executive Officer. The ratings reflect lack of diversity of leasing operations with leasing activities only diverted towards auto leasing. The ratings also factor in weak capitalization and liquidity position of the company due to continued losses.

For further information on this rating announcement, please contact Ms. Maham Qasim at 042-35723411-13 (Ext: 8005) or the undersigned at 021-35311861-70 (201) or email at

Javed Callea

Applicable rating criterion: Non-Bank Financial Companies (Oct, 2017)

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (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.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.VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings.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 2019 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

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