Press Release
JCR-VIS Reaffirms Ratings of Grays Leasing Limited
Karachi, December 31, 2018: JCR-VIS Credit Rating Company Limited has reaffirmed the entity ratings of Grays Leasing Limited (GLL) at ‘BB-/B’ (Double B Minus/Single B). The medium to long-term rating of ‘BB-’ denotes that obligations deemed likely to be met. Protection factors are capable of weakening if changes occur in the economy. Overall quality may move up or down frequently within this category. The short-term rating of ‘B’ denotes speculative investment characteristics; liquidity may not be sufficient to ensure timely payment of obligations. Outlook on the assigned rating is ‘Stable’. Previous ratings were announced on December 26, 2017.
GLL is engaged in leasing business and is classified as a Non-Banking Finance Company. Majority shareholding of GLL is vested with the GOC (PAK) Limited and Anwar Khawaja Industries (Pvt.) Limited. The assigned ratings take into limited scale, scope, and diversity of leasing operations amidst lack of sufficient funding and a chronic portfolio of non-performing leases against which recoveries have lately remained abysmal. Albeit to a small extent, the company continues to withdraw funding support from its associated concern and the Chief Executive Officer. Meanwhile, GLL has limited its scope of leasing operations to auto leasing only. The ratings also factor in inadequate capitalization and weak liquidity position of the company due to continued losses.
For further information on this rating announcement, please contact the undersigned at (021) 35311861-70 or Mr. Maimoon Rasheed at (042) 35723411-13 or fax to (021) 35311872.
Jamal Abbas Zaidi
Advisor
Applicable Rating Criteria: Non-Bank Financial Companies (October, 2017)
http://jcrvis.com.pk/docs/NBFCs%20201710.pdf