PACRA Maintains Entity Ratings of Jahangir Siddiqui and Co. Limited : AsiaNet-Pakistan

PACRA Maintains Entity Ratings of Jahangir Siddiqui and Co. Limited

August 16, 2018 | General Business News | Share:

Lahore, August 16, 2018 (PPI-OT): The ratings reflect JSCL’s strong presence as a Holding Company in the financial sector with a basket of strategic investments most prominent of which are JS Bank, Bank Islami Pakistan, EFU Life Assurance and EFU General Insurance. While JS Bank is on its path to establish itself in the medium sized banking sector, Bank Islami, lately, achieved pre-provisioning operational break-even. Meanwhile, EFU Life and EFU General continue as a stable income stream for the Company.

JSCL has made significant progress with its diversification strategy in energy, petroleum, and infrastructure segment. It is in the process of making investments in LPG storage and Oil Marketing Company. JSCL is envisaging an investment accretion of around PKR 4bln in the near term. This is predominantly being funded by it’s debt instruments. Although the investment activity has increased the debt exposure for the Company, it still remains within moderate limits.

Ratings draw strength from the Company’s moderately leveraged capital structure and continuing growth trajectory in its existing strategic investments. Meanwhile, strict financial discipline in terms of coverages remains critical for ratings.

For more information, contact:
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

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Category: General Business News