JCR-VIS Credit Rating Company Limited has maintained the long term entity rating of Grays Leasing Limited (GLL) at BBB+ (Triple B Plus) and short term rating has been revised from A-2 (A-Two) to A-3 (A-Three).

The high level of delinquencies in the portfolio has persisted as repayment capacity of a large number of borrowers has been constrained on account of the escalated interest rates. The company had to set aside higher amounts in provisions against the delinquent portfolio in 2008, while management continues to actively pursue the overdue receivables. Balance sheet size has also reduced over the last few quarters, while markup spreads remain marginalized. Outlook on the ratings remains Negative as liquidity constraints persist in the financial market as a whole and the operating environment remains challenging for secondary market borrowers. JCR-VIS will continue to monitor the ability of the company to maintain its risk profile in this backdrop.

JCR-VIS assigns entity rating of A-/A-2 to Amtex Limited

JCR-VIS Credit Rating Co. Ltd. (JCR-VIS) has assigned Amtex Limited (Amtex) a medium to long-term entity rating of A- (Single A Minus) and short-term rating of A-2 (A Two). JCR-VIS has also reaffirmed the rating of the privately placed sukuk issue of the company at A (Single A). Outlook on the ratings is Stable.

Amtex is a vertically integrated composite unit with over 90% of total sales comprising exports and the facility operates on a Direct to Store (DTS) basis. Key rating strengths include the consistently strong profitability of Amtex achieved by establishing strong export customer base over the years through provision of quality products and a well-established marketing network in several geographical regions. Furthermore, the company has maintained debt leverage at levels in line with assigned ratings. Inventory held is mainly backed by export orders, and debt servicing coverage is adequate.

JCR-VIS assigns Corporate Governance Rating of CGR-7 to Atlas Bank Limited

JCR-VIS Credit Rating Company Limited has assigned a corporate governance rating of CGR-7 to Atlas Bank Limited (ABK), which denotes moderately high level of corporate governance.

ABK is the first to have initiated a corporate governance rating exercise as a private sector bank. The focus on transparency, of the sponsors and the management of ABK, is evidenced in the bank having undergone this review.