JCR-VIS Reaffirms Ratings of Grays Leasing Limited

Karachi, December 26, 2017 (PPI-OT):JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of Grays Leasing Limited (GLL) at ‘BB-/B’ (Double B Minus/Single B). Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on November 09, 2016.

The ratings of GLL take into account its weak financial profile emanating from low business volumes, limited funding sources, chronic delinquent portfolio and inadequate capitalization and liquidity. The company has arranged funding from an associated company and the CEO to finance its operations. While the management has a continuing focus on recoveries from infected portfolio, the likelihood of material recovery in this regard in considered low given aging profile of the leases.

By end-1QFY18, gross and net infection ratios, though continue to remain high, improved primarily on the account of higher lease portfolio and lower NPLs. Provision coverage also improved on account of recovery of NPLs against forced sale value. Nevertheless, net NPLs to total equity has remained sizeable. The company has been able to build a small clean vehicle leasing portfolio to partly cover its operating costs. Going forward, the management plans to continue selective leasing with ongoing focus on recoveries.

For more information, contact:
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk

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JCR-VIS Reaffirms Ratings of Grays Leasing Limited

Karachi, December 26, 2017 (PPI-OT):JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of Grays Leasing Limited (GLL) at ‘BB-/B’ (Double B Minus/Single B). Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on November 09, 2016.

The ratings of GLL take into account its weak financial profile emanating from low business volumes, limited funding sources, chronic delinquent portfolio and inadequate capitalization and liquidity. The company has arranged funding from an associated company and the CEO to finance its operations. While the management has a continuing focus on recoveries from infected portfolio, the likelihood of material recovery in this regard in considered low given aging profile of the leases.

By end-1QFY18, gross and net infection ratios, though continue to remain high, improved primarily on the account of higher lease portfolio and lower NPLs. Provision coverage also improved on account of recovery of NPLs against forced sale value. Nevertheless, net NPLs to total equity has remained sizeable. The company has been able to build a small clean vehicle leasing portfolio to partly cover its operating costs. Going forward, the management plans to continue selective leasing with ongoing focus on recoveries.

For more information, contact:
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk

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JCR-VIS Reaffirms Ratings of Grays Leasing Limited

Karachi, December 26, 2017 (PPI-OT):JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of Grays Leasing Limited (GLL) at ‘BB-/B’ (Double B Minus/Single B). Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on November 09, 2016.

The ratings of GLL take into account its weak financial profile emanating from low business volumes, limited funding sources, chronic delinquent portfolio and inadequate capitalization and liquidity. The company has arranged funding from an associated company and the CEO to finance its operations. While the management has a continuing focus on recoveries from infected portfolio, the likelihood of material recovery in this regard in considered low given aging profile of the leases.

By end-1QFY18, gross and net infection ratios, though continue to remain high, improved primarily on the account of higher lease portfolio and lower NPLs. Provision coverage also improved on account of recovery of NPLs against forced sale value. Nevertheless, net NPLs to total equity has remained sizeable. The company has been able to build a small clean vehicle leasing portfolio to partly cover its operating costs. Going forward, the management plans to continue selective leasing with ongoing focus on recoveries.

For more information, contact:
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk

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