Rating of National Bank of Pakistan Leasing maintained at A+/A-1

Karachi, July 24, 2012 (PPI-OT): JCR-VIS Credit Rating Company Limited has maintained the entity ratings of NBP Leasing Limited (NBPL) at ‘A+/A-1’ (Single A Plus/A-One). Outlook on the assigned ratings has been revised from ‘Stable’ to ‘Positive’.

Ratings derive comfort from the financial strength of the sponsoring institution, National Bank of Pakistan (NBP), which is one of the largest commercial bank in Pakistan, having asset base of over Rs. 1 trillion. There exists a strong basis for expecting parent support in times of stress, given the resources available with the parent entity.

Core leasing activities of the company have picked pace with net leasing portfolio comprising a higher proportion of total assets over time. While fresh accretion of NPLs has been limited, quality of fresh disbursement will be meaningfully tested over a longer term. Even with growth in revenues, operational profits of the institution have remained at prior year’s level as there has been growth in administrative expenses as well.

However, bottom line results were higher in 2011 relative to the preceding year owing to capital gains on sale of investments. So far, NBPL was largely equity financed. The level of borrowings is expected to increase over the coming years, though leverage is projected to remain within prudent limits.

For more information, contact:
Mr. Javed Callea
Advisor
JCR-VIS Credit Rating Company Limited
Tel: +9221 35311861 (10 lines) (Ext: 501)
Fax: +9221 35311872-3
E mail: javed.callea@jcrvis.com.pk