The Pakistan Credit Rating Agency (Pacra) has maintained the long-term and short-term entity ratings of Modaraba Al-Mali (MAM) at "A-" (single A minus) and "A2" (A two), respectively. These ratings denote a low expectation of credit risk. The capacity for timely payment of financial commitments is considered strong.
The ratings reflect MAM's equity-based capital structure indicating strong risk absorption capacity. The Modaraba's newly carved out niche - maintenance services business launched under the brand, the Energisers - has received an encouraging response, while adding to its customer base, MAM is registering growth in this segment. The tower lease business, though still lags behind, has lately seen profitability as a result of slight enhancement in capacity utilisation. Meanwhile, MAM's association with one of the leading Islamic banks - Bank Islami Pakistan Limited - remains a key rating factor.-PR