20000331

Pacra assigns

'BBB', 'A3' rating

to Network

Leasing

RECORDER REPORT

KARACHI: The Pakistan Rating Agency (Pacra) has assigned a long-term rating of 'BBB' and a short term rating of 'A3' to Network Leasing Corporation (NLC).

The assigned ratings denote a low expectation of credit risk and adequate capacity to service financial obligations on a timely basis. These are applicable to the senior unsecured creditors of the company.

Owing to the diversity in the client base and prudent risk management policies, the impairment in NLC's lease portfolio remains low, translating into a low risk of potential loss. Meanwhile, with the advantage of having developed the operating expertise in the microlease niche market Ñ which has a vast untapped potential Ñ and access to long-term sources of funding, the company remains well positioned to benefit from any improvement in the operating environment.

The company's profitability is also expected to improve in future particularly with the improvement in lease disbursement.