The Pakistan Credit Rating Agency (Pacra) has maintained the long-term entity rating of Trakker (Pvt) Limited (TPL) at 'A-' (Single A Minus), and the short-term rating at 'A2' (A Two). The rating of privately placed secured TFC of 200 million rupees by TPL has been reaffirmed at 'A' (Single A). These ratings denote a low expectation from a strong capacity for timely payments of financial commitments.
The ratings reflect TPL's strong position in the vehicle tracking service sector, emanating from its superior technology infrastructure, well known brand and quality human resource. Moreover, the company has the ability to maintain its competitive edge over its peers on account of its association with one of the world's leading tracking solution providers - DigiCore group.
However, at the same time, the ratings take into account the company's highly leveraged capital structure. The management is cognisant of this and exploring various options to reduce the company's gearing. Nevertheless, coverages of the company are currently at comfortable level, driven by its strong cash flows.-PR