PACRA Maintains Entity Ratings of PAIR Investment Company Limited
Lahore, December 18, 2017 (PPI-OT):The ratings assigned to PAIR take into account its shareholders’ profile, with two sovereigns, Pakistan and Iran, having an equal stake in the company with shares held through Ministry of Finance and Iran Foreign Investment Company (IFIC), respectively. PAIR has been able to sustain its lending portfolio, both in volumes and quality. Management has created an adequate mix of sectors in advances, though client concentration remains high. The capital and treasury division actively manages a portfolio of investments comprising Government securities, Equities, Sukuk and TFCs and funds.
During the year, investment book has been consolidated; however, still provides comfortable cushion to the liquidity. Borrowing from financial institution remains the primary source of funding, while management’s attention is required for enhancing the deposit base. Liquidity position and capitalization indicators remained stable. Going forward, PAIR is focusing on strengthening the credit processes while tapping new customers. Management is Cognizant of the fact that JVFIs need to find new niche for growth and development, hence new avenues are being explored including strategic opportunities. Strengthening the non-funded revenue remains in core focus.
The ratings are dependent on the company’s ability to sustain its financial profile while managing the associated risks as advances increase. The concentration level in funding and advances needs to be pro-actively managed. Consistent efforts by the management to add further diversity as well as sustainability to PAIR’s operations would remain critical.
For more information, contact:
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