20000215

English leasing

rated BBB-D3

RECORDER REPORT

KARACHI: DCR-VIS Credit Rating Company has assigned initial medium to long-term entity rating of BBB- (triple B minus) and shortterm entity rating of D-3 (D three) to English Leasing Limited.

The English Leasing Company's financial performance was assessed in the backdrop of recessionary economic environment and strong competition for quality clients. Despite the aforementioned restraints, the company has maintained its growth pattern in net investment in leases while keeping the administrative expenses at more or less stable levels during Fy 98-99. It was also observed that the company had progressed in arranging long and short-term funds and was vying for reduction in cost of funds.

The company has a fairly consistent history of financial performance along with intermittent dividend payouts. Although management's efforts for recovery of increasing stuck-up receivables is gradually bearing fruit, further improvement in this regard remains to be observed.

The DCR-VIS said that Triple B minus means an adequate credit quality. The protection factors are reasonable and sufficient. Risk factors are considered variable if changes occur in the economy.

The D-3 rating means satisfactory liquidity and other protection factors qualify issues as to investment grade. The risk factors are larger and subject to more variation. Nevertheless, timely payment is expected.