Press Release

JCR-VIS Assigns Initial Entity Ratings to Sindh Leasing Company Limited

Karachi, April 28, 2015: JCR-VIS Credit Rating Company Limited has assigned initial entity ratings of ‘A/A-2’ (Single A/A-Two) to Sindh Leasing Company Limited (SLCL). Outlook on the assigned rating is ‘Stable’.

The ratings assigned to SLCL incorporate the ownership and implicit support of the Government of Sindh (GoS). Along with SLCL, GoS has also undertaken other projects in the financial services sector including a commercial bank and recently launched insurance and modaraba companies.

SLCL was established with an initial capital of Rs. 1b; with lending activities gradually picking up pace, the need for borrowings has so far not arisen. The institution currently carries sizeable amount of liquid assets on its books. Excess liquidity will be absorbed as the company forges ahead with its growth plans and borrowings are planned to be mobilized in the coming years, with debt leverage projected to increase to 4.7x by FY17. Support with respect to resource mobilization is evident by the intention to place Rs. 500m by the Sindh Province Pension Fund in Certificates of Investment to be issued by SLCL. With growth in lending activity and seasoning of the portfolio, underwriting quality will be tested over time.

Overall governance infrastructure is considered sound, with three of the seven members on the Board being independent directors; all Board committees are chaired by independent directors. Both the Board and management team include personnel having experience specific to the financial services sector.

For further information on this rating announcement, please contact the undersigned (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 604) at 021-35311861-71 (10 lines) or fax to 021-35311873.

Javed Callea

Applicable Rating Criteria:
Non-Bank Financial Companies (March, 2005)

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 2015 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