Press Release

JCR-VIS Reaffirms Ratings of Grays Leasing Limited


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Karachi, December 01, 2015: 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 December 11, 2014.
The ratings assigned to GLL take into account the weak risk profile of the institution owing to the on-going losses for the past several years which resulted in the erosion of the equity base. GLL’s equity is short of the minimum capital requirement (MCR) stipulated for deposit taking Non-Banking Finance Companies (NBFCs) undertaking business of leasing. Liquidity profile of GLL also remained stressed on account of weak portfolio quality and lack of access to market sources of funding. The company remained restricted from raising deposits from the general public by the Securities & Exchange Commission of Pakistan (SECP) until regulatory compliance with capital requirements is achieved. GLL is dependent on the running finance facility provided by associated concern to fund its operations.
Leasing operations of the company remained subdued with focus primarily on recoveries. Asset quality indicators are weak with majority of the portfolio being classified; at end-FY15, net NPL’s are 1.5 times of tier-1 equity.
For further information on this rating announcement, please contact Mr. Maimoon Rasheed at 042-35723411-12 or the undersigned at 021-35311861-70 (10 lines) or fax to 35311873.

Mohammad Khalid Ali

Applicable Rating Criteria: Non-Bank Financial Companies (March, 2005)

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 2015 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