It has reaffirmed the medium to long-term entity rating of the Crescent Leasing Corporation Limited (CLCL) at 'A+' (Single A Plus), the short-term entity rating at 'A1' (A One) and the medium to long-term ratings of both, the TFC-2 issue and TFC-3 at 'AA-' (Double A Minus). The outlook on these ratings is 'stable.'
The Crescent Leasing has demonstrated continued focus on business development by way of diversification into new markets and products. Its risk profile has remained consistent on a time-line basis. As a result of prudent underwriting procedures, its asset quality indicators have remained strong.
The profit margins have come under pressure in the entire leasing sector due to the continually increasing borrowing rates. The Crescent Leasing plans to actively tap the retail market for funds, which can provide the institution the increased financial flexibility.
While spreads may remain under pressure during the current year, they are likely to adjust as older low rate leases expire.
The JCR-VIS has reaffirmed the management quality rating of UBL Fund Managers Limited (formerly United Asset Management Company Limited) and harmonised it to 'AM3' on our revised management quality rating scale. The rating takes into consideration positive developments in the management company with reference to independence of the investment committee and presence of a professional team.
The stability of the management team will be monitored, going forward for continuation of policies and growth of the company. The UBL Fund Managers plans to launch new funds and systems will also be geared up accordingly to accommodate the needs for a growing size and variety of funds under its management.
The JCR-VIS has also reaffirmed the Fund Stability Rating of United Money Market Fund (UMF) at 'A+(f)' (Single A Plus), which indicates moderate degree of stability in Net Asset Value. The rating reflects low duration and strong credit quality of the fund's investments. Over the last year, duration of the portfolio has reduced significantly which mitigates liquidity-related risks stemming from concentration in unit-holding.