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

Applicable Rating Criteria: Non-Bank Financial Companies (October, 2017)

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 not an NRSRO and its credit ratings are not NRSRO credit ratings.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 2018 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.

JCR-VIS Credit Rating Company Limited