Pakistan Credit Rating Agency Limited maintains ratings of Standard Chartered Modaraba

Lahore, January 14, 2016 (PPI-OT): The Pakistan Credit Rating Agency Limited (PACRA) has maintained the long-term and short-term entity ratings of Standard Chartered Modaraba (SCM) at “AA+” (Double A plus) and “A1+” (A one plus), respectively. The ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments. The ratings remain under Rating Watch.

Standard Chartered Bank Pakistan Limited (SCBPL) signed a non binding MOU with ORIX Leasing Pakistan (ORIX) in Sep-14 to divest Standard Chartered Modaraba (SCM) along with its management company. Recently, SCBPL has entered into a share and certificate purchase agreement with ORIX. As per the agreement, ORIX will be acquiring SCBPL’s 100% stake in the Modaraba Management Company – Standard Chartered Services of Pakistan (Private) Limited and SCBPL’s 20% stake (direct and indirect) in SCM. The transaction remains subject to satisfaction of various conditions including regulatory approvals contained in the agreements; pending finalization, the ratings of SCM would remain on Rating Watch.

SCM has observed improvement in performance on the back of good quality asset book, better spread management and contained operational costs. Given the management’s cautious approach during the on-going acquisition process, SCM is likely maintains to its asset quality while following a conservative growth strategy. The ratings are dependent on the modaraba’s ability to sustain its risk profile. Successful execution of the share purchase agreement and a smooth change in ownership are important.

For more information, contact:
Hammad Rashid
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

Pakistan Credit Rating Agency Limited maintains ratings of ORIX Leasing Pakistan Limited

Lahore, January 14, 2016 (PPI-OT): The Pakistan Credit Rating Agency Limited (PACRA) has maintained the long-term and short-term entity ratings of ORIX Leasing Pakistan Limited (ORIX) at “AA+” (Double A plus) and “A1+” (A one plus), respectively. The ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments. The ratings remain under Rating Watch.

Recently ORIX has entered into an Amalgamation Agreement and Share and Certificate Purchase Agreement with Standard Chartered Bank Pakistan Limited (SCBPL). As per the agreement, Standard Chartered Leasing (86% owned by SCBPL) will merge with and into ORIX. Moreover, ORIX will be acquiring SCBPL’s 20% stake (direct and indirect) in Standard Chartered Modaraba and 100% stake in the Modaraba Management Company – Standard Chartered Services of Pakistan (Private) Limited. The transaction remains subject to satisfaction of various conditions including regulatory approvals contained in the agreements; pending finalization, the ratings of ORIX would remain on Rating Watch.

The ratings of ORIX reflect its leading market position in leasing industry, emanating from robust operational outreach, diversified financing book, effective risk management and dynamic technology infrastructure. The company’s strong business profile is supplemented by a healthy asset base and sound asset quality. The company continues to focus on volumetric growth while closely managing its spreads, in turn generating better profitability.

Demonstrated commitment of ORIX Corporation-Japan remains a key rating factor. The ratings are dependent on the company’s ability to sustain its risk profile. Successful execution of acquisition and merger transaction is important, particularly managing integration challenges.

For more information, contact:
Hammad Rashid
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

Pakistan Credit Rating Agency Limited maintains ratings of Standard Chartered Leasing

Lahore, January 14, 2016 (PPI-OT): The Pakistan Credit Rating Agency Limited (PACRA) has maintained the long-term and short-term entity ratings of Standard Chartered Leasing Limited (SCLL) at “AA+” (Double A plus) and “A1+” (A one plus), respectively. The ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments. The ratings remain under Rating Watch.

Standard Chartered Bank Pakistan Limited (SCBPL) signed a non binding MOU with Orix Leasing Pakistan (ORIX) in Sep-14 to merge Standard Chartered Leasing Limited (SCLL) with and into ORIX. In a recent development, an amalgamation agreement has been signed between the entities and SCBPL’s stake in SCLL is being acquired by ORIX. The transaction is in the process of relevant approvals and fulfilment of agreed commitments by the respective entities. In lieu of this, PACRA has placed the ratings of SCLL on Rating Watch. The ratings of SCLL would be withdrawn once the merger is finalized and SCLL would seize to exist as an entity.

The ratings of SCLL reflect healthy profitability. Marginal decline in performance is attributable to deterioration in asset book, though partly offset by contraction in operational costs. Despite accretion in infection, net impact is expected to be low given strong recovery mechanism in place. The ratings are dependent on SCLL’s ability to sustain its risk profile. Smooth change in ownership is important.

For more information, contact:
Hammad Rashid
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

Pakistan Credit Rating Agency Limited maintains entity ratings of IGI Investment Bank Limited

Lahore, January 14, 2016 (PPI-OT):The Pakistan Credit Rating Agency Limited (PACRA) has maintained the long-term and short-term entity ratings of IGI Investment Bank Limited (IGI IBL) at “BBB-” (Triple B Minus) and “A3” (A Three), respectively. The ratings denote an adequate capacity for timely payment of financial commitments. Meanwhile, “Positive Outlook” assigned to these ratings remain intact.

The ratings of IGI IBL reflect strong commitment of key sponsor – Packages Group – to continue providing financial support to the bank. On a standalone basis business profile of IGI IBL is subdued, an outcome of significantly curtailed operational scale; however, pre-provision performance improved with decline in related costs. Meanwhile, the management aggressively pursued recoveries from delinquent assets, resulting in positive bottom-line.

The positive outlook on the ratings of IGI IBL capture expected improvement in business profile, as the management is pursuing merger of IGI Finex Securities Limited, wholly owned subsidiary of IGI IBL, with and in to the IGI IBL. This would enable the merged entity to focus on a strategy to provide a wide range of non-fund based financial services, including i) brokerage with related research services, ii) debt instrument custodian/trustee services, iii) mutual funds distribution capitalizing on, “Fund Select” platform, iv) corporate advisory and v) wealth management. The ratings are dependent on continuous support from the sponsor. Meanwhile, sustainable core revenue stream has to be built.

For more information, contact:
Hammad Rashid
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

JCR-VIS Reaffirms Management Quality Rating of HBL Asset Management Limited at AM2-

Karachi, January 14, 2016 (PPI-OT): JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the Management Quality Rating of HBL Asset Management Limited (HBL AMC) at ‘AM2-’ (AM-Two Minus). Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on March 13, 2015.

The rating assigned to HBL AMC take into account presence of a structured investment process and sound control infrastructure. The AMC benefits from parental support and commitment from its single shareholder, HBL, the largest commercial bank in the country. With the recent launch of HBL Islamic Asset Allocation fund, HBL AMC is managing a diversified portfolio of 10 funds. The AMC aims to better align product suit with investors evolving needs and the competitive environment. Unitholder continues to feature sizeable concentration albeit improving on a year-on-year basis.

HBL AMC’s senior management team is experienced. Strengthening of the research and investment management team has been viewed positively. Organizational structure of the sales function was revamped with separate heads for conventional and Islamic sales. There is nevertheless room to strengthen the organizational structure of the AMC.

In the sales strategy currently being pursued by the company, greater focus towards achieving retail penetration has been observed with branches of HBL also being used as a channel to generate sales. The IT platform is adequate and supports the growing operations of the company. Overall investment strategy of the AMC is risk averse. Stock funds are predominately invested in blue chip companies which have underperformed in the recent period. Resultantly, performance of stock funds remained depressed. Returns of the income and money market funds remained largely competitive.

For more information, contact:
Ms. Sobia Maqbool
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk

Securities and Exchange Commission of Pakistan witnesses 25percent growth in company registration during first half of Financial Year-2015-16

Islamabad, January 14, 2016 (PPI-OT): The Securities and Exchange Commission of Pakistan (SECP), during the first half of current fiscal year (2015-16) registered 2,747 new companies, indicating a growth of 25 % as compared to the corresponding period last year. The growing trend in company registration is a sign of enhanced investors’ confidence on SECP’s policies and procedures.

During July –Dec 2015, around 90 percent companies were registered as private limited companies, while 7 percent companies were registered as single member companies. Three percent of the companies secured registration as public unlisted, associations’ not-for-profit, trade organizations and foreign companies.

The trading sector took lead in incorporations by registering 357 companies, followed by services with 349, information technology with 244, construction with 225, tourism with 204, power generation with 97, communications with 87, education with 83, corporate agricultural farming with 78, broadcasting and telecasting and food and beverages with 75 each, pharmaceutical with 72, engineering with 70 and 731 companies registered in other sectors. Moreover, 25 foreign companies were also registered by CROs in Karachi, Islamabad and Lahore.

Moreover, foreign investment has also been observed in 154 new companies. These companies received investors from Afghanistan, Australia, Bahrain, Belgium, Burma, Canada, Cayman Islands, China, Denmark, Georgia, Germany, Hong Kong, Indonesia, Iran, Ireland, Italy, Jordan, Kazakhstan, Korea (South), Lebanon, Libya, Malaysia, Mexico, New Zealand, Nigeria, Norway, Peru, Qatar, Russia, Singapore, Spain, Sweden, Taiwan, Tunisia, Turkey, UAE, UK, Ukraine and the US.

Furthermore, in December 2015, the SECP registered 531 new companies. Eighty Seven percent of the companies were registered as private limited companies, 9 percent companies were registered as single member companies. Four percent of the companies were registered as public unlisted, associations’ not-for-profit and foreign companies.

Incorporations during December 2015 include 7 foreign companies and foreign investment in 35 local companies. The SECP is continuously working to ensure hassle free provision of services to the stakeholders/corporate sector and hoped that the reforms in company registration will result in significant growth in the corporate sector portfolio.

For more information, contact:
Shakil Ahmad Chaudhary
Head, Internal and External Communication
Securities and Exchange Commission of Pakistan (SECP)
NIC Building, 63 Jinnah Avenue, Islamabad
Tel: +92-51-9214005 or +92-51-9214009 (Ext. 378)
Fax: +92-51-9206459
Cell: +92-302-8552254
E-mail: shakil.chaudhary@secp.gov.pk
Website: www.secp.gov.pk

Securities and Exchange Commission of Pakistan conducts Consultative Session on draft Companies Bill

Multan, January 14, 2016 (PPI-OT): The Securities and Exchange Commission of Pakistan (SECP) in collaboration with the Multan Chamber of Commerce and Industry (MCCI) organized a consultative session on the draft Companies Bill at MCCI. The invitees of the Session included eminent chartered accountants, lawyers, corporate consultants, professionals, businessmen, company secretaries of leading companies. The Session was attended by Mr. Javed Hussain (Registrar of Companies), Syed Iftikhar-ul-Hassan Naqvi (Joint Registrar), members of the MCCI Executive Committee.

The Session started with the inaugural note by Mr. Muhammad Tariq Khan, Vice President MCCI. A detailed presentation was made by Mr. Jawed Hussain, Registrar of Companies to the participants on the substantial changes proposed through the draft Bill. The main objects of the presentation included; providing facilitation to the corporate sector and other stake holders, strengthening the existing regulatory frame work, steps towards adoption of technology, specific provisions to safeguard the rights and interests of strategic investors and to attract foreign investments and new concepts adopted by international jurisdictions.

The presentation was followed by a very productive feedback from the participants on various aspects of the draft Bill. The response of the participants was appreciated and noted for further deliberation at the relevant quarters and for finalizing the draft Bill. The SECP plans to hold a series of consultative sessions at various other cities across Pakistan in order to have maximum participation and feedback on Draft Companies Bill.

For more information, contact:
Shakil Ahmad Chaudhary
Head, Internal and External Communication
Securities and Exchange Commission of Pakistan (SECP)
NIC Building, 63 Jinnah Avenue, Islamabad
Tel: +92-51-9214005 or +92-51-9214009 (Ext. 378)
Fax: +92-51-9206459
Cell: +92-302-8552254
E-mail: shakil.chaudhary@secp.gov.pk
Website: www.secp.gov.pk