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Lahore, August 28, 2019 (PPI-OT): The rating reflects limited risk appetite. The equity of the company is deployed in liquid avenues. The Investment Policy Statement envisages pre-dominant exposure towards equities (Large, mid and small) with an adequate balance kept in fixed income avenues. In the midst of depressed equity market, the market value of the investment book exceeds the carrying and the difference in it has increased. The sponsors of the company previously decided to wind-up the company. The plan has now been reverted. The company may now be offloaded to prospective sponsors, hence the rating is placed on Rating Watch – developing status.
The rating may be accordingly adjusted if there is a change in the risk appetite of the company before or after the strategic divestment The rating is dependent upon the execution of a consistent business strategy and take up of the company by any prospective buyer. Comfort is drawn from the company’s liquidity. The rating watch takes into consideration the uncertainty surrounding the takeover of the company planned in the near future.
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