JCR-VIS Credit Rating Company Limited (JCR-VIS) had placed the entity and TFC ratings of Crescent Leasing Corporation Limited (CLCL) on 'Rating Watch' in June 2006. Business had been affected by issues developing at an associated concern.
However, in a recent move, approximately 78.2 percent of the share capital of the company along with management control has been acquired by a group of buyers comprising Al-Zamin Leasing Modaraba, certain directors and shareholders of Al-Zamin Leasing Modaraba including Zahidjee Textile Mills and Muhammad Zahid.
The management is now focussed towards reinstating money market lines and recovery of outstanding exposures. Plans for restoration of profitability and business growth have also been developed, including re-branding of the organisation.
The shareholders have also proposed merger with Universal Leasing Corporation Limited, of which the company already holds 51 percent. Investors will be notified of the developments on this front.
Meanwhile, the entity ratings of 'BBB+/A-2' (Triple B Plus/A-two) and the ratings of 'A-' (Single A minus) assigned to its outstanding TFC-2 and TFC-3 continue to be placed under 'Rating Watch-Developing' status.-PR