-JCR-VIS keeps Sigma Leasing at A-/A-2.
BANKING AND CREDIT NEWS-December 27, 2010--JCR-VIS keeps Sigma Leasing at A-/A-2(C)2010 M2 COMMUNICATIONS http://www.m2.com
27 December 2010 -- Pakistan's JCR-VIS said it had maintained the medium-to-long-term entity rating of local leasing company Sigma Leasing Corp Ltd at A- and its short-term entity rating at A-2.
The agency issued the following press release:
Karachi, December 24, 2010: JCR-VIS Credit Rating Company Limited has reaffirmed the medium to long-term entity rating of Sigma Leasing Corporation Ltd. (SLCL) at 'A-' (Single A Minus) and short-term entity rating at 'A-2' (A-Two). Outlook on the assigned rating is 'Stable'.
Given the current business environment, SLCL has continued to scale back its core operations with a constant focus on recoveries. This has enabled the company to maintain balance sheet risk at manageable levels, with almost all borrowings having been retired during the out-going year. Additional liquidity has largely been channeled towards short term government paper in addition to which there has been some increase in equity holdings. Income from current operations including investments is likely to enable the company to meet operating costs.
SLCL is currently compliant with the minimum capital requirement for leasing companies. Sponsors have provided commitment to bridge the shortfall for meeting the June 2011 requirement, if any. During the on-going year, SLCL plans to maintain its cautious stance, while also exploring potential avenues particularly in the small and medium enterprise sector.
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|Publication:||M2 Banking & Credit News (BCN)|
|Date:||Dec 27, 2010|
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