Pakistan Credit Rating Agency (Pacra) has upgraded long-term rating of Standard Chartered Leasing Limited (SCLL) to AA+ (double A plus) [Previous: AA] while short-term rating has been maintained at A1+ (A one plus). The ratings denote a very low expectation of credit risk. They indicate very strong capacity for timely payment of financial commitments.
The ratings of SCLL reflect its strong ownership by Standard Chartered Bank (Pakistan) Limited; ultimately owned by a recognised international banking group - Standard Chartered. Over the recent years, this association has led to strong integration of SCLL into Standard Chartered's operational platform.
The company, while deriving synergies from its association with the group, shares common brand, clientele and technological infrastructure. On standalone basis, SCLL has been gradually strengthening its foothold in the leasing industry, while capitalising on strong franchise and extended outreach of SCBPL in mobilising relatively low cost funds in the leasing sector. In line with growing business volumes, profitability has improved.
Meanwhile, risk absorption capacity emanating from a sound equity base and relatively low leveraged financial profile provides comfort to the ratings. SCLL, listed on all stock exchanges of the country, has been in commercial operations since May 1994. Sandard Chartered Bank (Pakistan) Limited is the majority shareholder of the leasing company with an ownership of 86.45 per cent. The bank is rated 'AAA' by Pacra.-PR
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