Pakistan Credit Rating Agency Limited maintains entity ratings of standard chartered modaraba

Lahore, January 16, 2015 (PPI-OT): The Pakistan Credit Rating Agency Limited (PACRA) has maintained the long-term and short-term entity ratings of Standard Chartered Modaraba (SCM) at “AA+” (Double A plus) and “A1+” (A one plus), respectively. These ratings denote a very low expectation of credit risk emanating from a very strong 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 Modaraba (along with its management company) and Standard Chartered Leasing 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, SCM continues to benefit from strong parentage and established brand name – Standard Chartered – that help the Modaraba in maintaining its market standing.

On standalone basis, SCM has witnessed improvement in its performance over the years. Despite addition of certain new NPLs, the asset quality remains good. Nevertheless, the Modaraba’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 Modaraba intends to focus on upholding its status with cautious 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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