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Home »Stocks and Bonds » Pakistan » Pacra maintains JSCL’s ratings

PACRA maintains ratings of Jahangir Siddiqui & Co. Limited (Long Term Rating AA, Short Term Rating, A1+). The ratings reflect JSCL's strong risk absorption capacity emanating from a sizeable investment portfolio mainly financed through equity. These are pre-dominantly strategic in nature; notably most are listed with adequate liquidity.

JSCL has built a non-strategic book of investments having a market value of over Rs 3 billion at end Sept-17. The company intends to penetrate in energy, petroleum and infrastructure segments. JSCL's financial profile is supported by its strategic investments in financial sector - Banking and Insurance. The company benefits from ensuing dividend stream, which is expected to increase with improving underlying entities. Oversight framework for the strategic investments is improving. JSCL has a low leveraged capital structure.

JSCL intends to fund it's new core investments through a combination of debt and internal sources given gestation period of most initiatives, these are primarily finance through long-term debt instruments. JSCL has an established track record for issuance of debt instruments. Currently it has three outstanding instruments, while it is planning to issue another shortly. Given its regular income flow, interest and principal coverages remain good.-PR

Copyright Business Recorder, 2018


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