Press Release

VIS Reaffirms Entity Ratings of Primus Leasing Limited

Karachi, October 31, 2023: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Primus Leasing Limited (PLL) at ‘A+/A-1’ (Single A Plus/A-One). Long-term rating of ‘A+’ denotes good credit quality and adequate protection factors; risk factors may vary with possible changes in the economy. Short-term rating of “A-1” denotes high certainty of timely payment, excellent liquidity factors supported by good fundamental protection factors. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on December 6, 2022.

The ratings assigned to PLL reflect its strong sponsor strength (Pak Brunei Investment Company Limited rated at ‘AA+/A-1+’ by VIS), sound asset quality indicators with negligible infection, continuous growth in lease and loan portfolios, improvement in efficiency in line with higher average ticket size and overall enhancement of profitability metrics. The overall lease portfolio exhibits diversification in terms of sectoral composition. The Company also has a service level agreement in place with the holding company for provision of all support functions and particularly for risk management and internal audit which is reflected positively in the ratings. The ratings derive comfort from implicit financial support extended by the holding company with enhancement of short-term interest-bearing funding line to support the Company in its growth phase. The funding is expected to continue to support in the medium term. In addition, PLL has access to commercial borrowings to fund the growth momentum. Moreover, an arrangement for the transfer/sale of loan/ lease rental receivables to the holding company is also available in case the need arises for liquidity support. The ratings also factor in the sound governance levels supported by presence of two independent directors on the Board, adequate board level committees in place and experienced management team. Continuation of portfolio growth while keeping the asset quality in check will remain imperative for ratings going forward. In line with prevailing economic and political uncertainty in the country coupled with challenging NBFC environment, materialization of growth targets will remain critical.

For further information on this rating announcement, please contact Ms. Maham Qasim (042-35723411-13, Ext. 8010) and/or the undersigned at 021-35311861-66 (Ext. 207) or email at

Sara Ahmed

Applicable Rating Criteria: Non-Bank Financial Companies (March 2020)

VIS Issue/Issuer Rating Scale

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2023 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .