Press Release
JCR-VIS Maintains Rating of Pak-Kuwait Takaful Company Limited at A-
Karachi, December 30, 2009: JCR-VIS Credit Rating Company Limited has maintained the financial strength rating of Pak-Kuwait Takaful Company Limited (PKTCL) at ‘A-’ (Single A Minus).
With growth in business volumes, the proportion of motor business has started to decline, though it continues to be the predominant avenue of business generation. New business relationships have been forged in recent months for pursuing diversification and the management has put in place aggressive growth targets for FY2010, with motor to contribute 55% of the business mix.
The company has recently made a rights issue of Rs. 150m, which has been fully subscribed. This had helped in improving liquidity and capitalization indicators, which had come under stress on account of accumulated deficit in the Participants Takaful Fund.
The shareholding of Etiqa Overseas Investment Pte Ltd (Etiqa) has enhanced from the existing 25% to 32.5%, as some existing investors did not subscribe to their share of rights issue, which has been taken up by Etiqa. Representative of Etiqa has now assumed the role of Chairman of Board of Directors and the company expects to receive greater level of input from this sponsor, going forward. Outlook on the assigned rating has been revised from ‘Positive’ to ‘Stable’.
For further information on this rating announcement, please contact Syed Ziauddin Ahmed (Ext: 508) or Ms. Sobia Maqbool (Ext: 506) at 021-35311861-70 or fax to 021-35311873.
Faheem Ahmad
President & CEO