Pakistan Credit Rating Agency Limited maintains entity ratings of Standard Chartered Leasing Limited

Lahore, January 15, 2015 (PPI-OT): The Pakistan Credit Rating Agency Limited (PACRA) has maintained the long-term and short-term entity ratings of Standard Chartered Leasing Limited (SCLL) at “AA+” (Double A plus) and “A1+” (A one plus), respectively. These ratings denote a very low expectation of credit riskemanating from the highest capacity for timely payment of financial commitments.

Standard Chartered Group, as part of its global consolidation strategy, has identified a number of its entities as noncore with a plan to take exit from these. In Pakistan, it has marked Standard Chartered Leasing and Standard Chartered Modaraba (along with its management company) for prospective divestment. Recently, Standard Chartered Bank (Pakistan) Limited (SCBPL) has signed an MoU with Orix Leasing Pakistan (ORIX) for such divesture.

PACRA would put the Rating Watch once certainty as to divesture process is established. Meanwhile, SCLL continues to benefit from strong parentage and established brand name – Standard Chartered – that help the company in maintaining its market standing.

On standalone basis, SCLL has witnessed improvement in its performance over the years. Despite addition of certain new NPLs, the asset quality remains adequate. Nevertheless, the SCLL’s rigorous loan approval process and effective post disbursement monitoring are expected to benefit in averting any sizeable fresh infections. Given likelihood of change in ownership, in the interim period, the company intends to focus on upholding its status with limited growth outlook.

For more information, contact:
Hammad Rashid
Analyst
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
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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