The Pakistan Credit Rating Agency (Pacra) has maintained the entity ratings of First Fidelity Leasing Modaraba (FFLM) at "A-" (Single A minus) for the long-term and "A2" (A two) for the short-term. Meanwhile, Pacra has assigned "A" (Single A) rating to the proposed Sukuk issue of 200 million rupees by FFLM.
The ratings denote a low expectation of credit risk and a strong capacity for timely payment of financial commitments. The ratings reflect FFLM's low leveraged capital structure and good asset quality. Although the management plans to expand its Musharika business mainly relating to development projects, it intends to keep its contribution towards the total assets limited. At the same time, with the ongoing restructuring of Modaraba's asset base its performance is expected to improve.-PR
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