Lahore, June 23, 2015 (PPI-OT):The Pakistan Credit Agency Limited (PACRA) has maintained the long-term and short-term entity ratings of PAIR Investment Company Limited (PAIR) at “AA” (Double A) and “A1+” (A One Plus), respectively. These ratings indicate a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.
The ratings of PAIR reflect joint sovereign ownership of Governments of Pakistan and Iran. Performance of the company improved moderately. To bring strength to the revenues, the management’s plan envisages growth in fund based avenues, particularly augmenting treasury operations besides gradually expanding its loan book. Nevertheless, success herein requires concerted efforts, particularly after taking proper note of PAIR’s capabilities and market dynamics.
PAIR has yet to capitalize on its perceived niche – project financing. To finance targeted expansion in assets, the company has gradually built its deposit base while increasing its contribution in overall funding structure. Increasing deterioration in asset quality, despite management’s cautious efforts, is a concern. The ratings draw comfort from the company’s robust liquidity and significantly higher capital adequacy.
The ratings are dependent on the company’s ability to sustain strong financial profile. Stability in the management team would be important, given increasing delinquency ratio, strengthening risk management systems is critical to avert further pressure on asset quality.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425