Fidelity Modaraba ratings maintained

The Pakistan Credit Rating Agency (Pacra) has maintained the entity ratings of First Fidelity Leasing Modaraba at "A-" (Single A minus) for the long-term and "A2" (A two) for the short-term.
The ratings denote a low expectation of credit risk and a strong capacity for timely payment of financial commitments. These ratings have been placed on Rating Watch pending the outcome of the proposal to merge the Modaraba into another entity of the Crescent Group.
The ratings of the Modaraba reflect its sustained risk absorption capacity mainly an outcome of its pre-dominantly equity-based capital structure. The management intends to maintain a low risk credit expansion strategy with increasing focus on property investments.
The First Fidelity Leasing Modarab, listed on all the three stock exchanges of the country, was established in 1991 and is managed by the Fidelity Capital Management (Pvt) Limited. Recently, the Crescent Standard Business Management (Pvt) Limited (CSBML) has acquired the entire shareholding of the management company of the Modaraba. The CSBML is part of the Crescent Group and mainly serves as a holding company for the Group's interest in various entities.
The Crescent Group is one of the well-known corporate groups in Pakistan with diverse interests both in manufacturing and financial services.