Daily Archives: August 20, 2018

JCR-VIS finalizes rating to Pakistan’s First Basel 3 compliant Tier 1 Sukuk by Meezan Bank Limited

Karachi, August 20, 2018 (PPI-OT): Upon review of final signed legal documents, JCR-VIS Credit Rating Company Limited has finalized the rating of ‘AA-’ (Double A Minus) assigned to the Tier 1 Sukuk issue of Meezan Bank Limited’s (MBL). Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on June 05, 2018.

MBL has issued Pakistan’s first privately placed, perpetual, unsecured, subordinated, non-cumulative and contingent convertible Shariah compliant Sukuk of Rs. 7.0b. The issue proceeds will contribute towards the Bank’s additional Tier-1 (ADT-1) capital and will be utilized towards enhancement of the bank’s business operations. MBL’s ADT-1 instrument will rank ahead of claims of ordinary shareholders. Ratings also reflect relative risk of the ADT-1 instrument including profit servicing from only earnings for the year, conversion feature in the event of pre-specified trigger events, lock-in clause and point of non-viability in terms of regulatory requirements.

JCR-VIS has assigned entity ratings of AA+/A-1+ (Double A Plus/A-One Plus) to MBL indicating high credit quality and adequate protection factors. The assigned ratings reflect the Bank’s dominant position in the Islamic Banking Industry, increasing market share, healthy customer franchise and strong financial risk profile.

For more information, contact:
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk

JCR-VIS Reaffirms IFS Rating of UBL Insurers Limited

Karachi, August 20, 2018 (PPI-OT): JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the Insurer Financial Strength (IFS) rating of UBL Insurers Limited (UIL) at ‘AA-’ (Double A Minus). Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on May 29, 2017. The assigned rating takes note of UIL’s continued growth in business volumes, improved underwriting results and conservative investment profile. The rating also draws strength from the company’s strong sponsor profile and sound reinsurance panel.

Top line of the company grew at 18.3%, outpacing industry growth of 8.1% driven by motor and fire segments while exposure to health was curtailed. Given lower incidence of claims, the company’s underwriting results have continued to improve in 2017 and 1H2018. A similar improvement has been observed in the combined ratio of the company on a timeline basis on account of decrease in underwriting expense ratio.

For ongoing year, UIL envisages focus on increasing penetration in rural market, new product development, and emphasis on social media marketing and digital distribution platforms. Going forward, ability to demonstrate a consistent and improving track record in underwriting performance and a strengthening trend in capital on both absolute and risk-adjusted basis will continue to be tracked by JCR-VIS.

Liquidity profile of the company is considered adequate. Insurance debt has increased in absolute terms and remains sizeable in relation to gross premium while ageing profile is considered satisfactory. Given the new regulations related to unpaid premium and ongoing collection efforts, receivables are projected to be reduced. Going forward, strengthening of liquidity indicators in general and operating cash flows in particular, as projected by the management, are considered important from a rating perspective.

The assigned rating remains underpinned by the sponsors’ profile, with shareholding vested with Bestway (Holding) Limited, and United Bank Limited. In 2017, the Abu Dhabi Group completely divested its stake in UIL to Bestway Cement Limited. A key change in senior management was appointment of Mr. Zeeshan Muhammad Raza as acting Chief Executive Officer in place of Mr. Babar Mahmood Mirza who resigned in the outgoing year.

For more information, contact:
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk

JCR-VIS Assigns Ratings to Askari Cement Limited

Karachi, August 20, 2018 (PPI-OT): JCR-VIS Credit Rating Company Limited has assigned entity ratings of ‘A/A-1’ (Single A/A-One) to Askari Cement Limited (ACL). Outlook on the assigned ratings is ‘Stable’. The assigned ratings incorporate strong sponsor profile of ACL which is a wholly owned subsidiary of Fauji Foundation one of the largest business conglomerates in the country. Strong probability of timely support from sponsors has been factored into the ratings.

Standalone ratings reflect adequate liquidity and profitability profile. However, ratings are constrained by current sector dynamics where sizeable capacities coming online and inability to pass on increasing raw material prices has impacted financial profile of industry players. Moreover, company’s aggressive dividend payout policy which combined with sizeable debt funded expansion reflects an aggressive financial policy.

ACL currently operates two plants in Wah and Nizampur with installed cement production capacity of 2.68m tons per annum. The company has a 7% market share in terms of installed capacity in the North Zone. Capacity utilization of the plant has ranged between 71.8% and 86.4% over the last three years. In order to enhance efficiencies and reduce cost, the company is working upon installation of a 7.5MW Waste Heat Recovery (WHR) plant at Wah and upgradation of Nizampur plant through a BMR. Completion of BMR at Nizampur plant will also increase installed capacity to 2.89m tons per annum. The management is also in the process of finalizing expansion plans.

Profitability indicators, which have weakened in FY18, have remained healthy on the back of growth in dispatches over the last few years. However, gross margins, which compare less favourably to peers, have witnessed pressure during FY18. Going forward, gross margins of the company are expected to remain under pressure on account of sizeable new capacities coming online. Impact of decline in cash flows on account of lower gross margins is projected to be offset by incremental cash flows post completion of WHR at Wah plant and BMR at Nizampur plant.

The assigned ratings also incorporate the company’s higher leverage indicators vis-à-vis peers. Going forward, JCR-VIS expects leverage indicators to further increase to fund future projects. Debt servicing coverage is expected to remain adequate for repayment of existing and WHR and BMR debt. JCR-VIS will assess funding mix and financing terms once expansion plans are finalized and will revisit ratings accordingly.

For more information, contact:
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk

BMG, KCCI extend heartfelt congratulations to Prime Minister Imran Khan

Karachi, August 20, 2018 (PPI-OT): The leadership of Businessmen Group (BMG) and Office Bearers of the Karachi Chamber of Commerce and Industry (KCCI) have extended heartfelt congratulations to Imran Khan on taking oath as 22nd Prime Minister of the Islamic Republic of Pakistan.

In a statement issued, Chairman Businessmen Group and Former President KCCI Siraj Kassam Teli, Vice Chairmen BMG and Former Presidents KCCI Tahir Khaliq, Zubair Motiwala, Haroon Farooki and Anjum Nisar, President KCCI Muffasar Atta Malik, Senior Vice President Abdul Basit Abdul Razzak and Vice President Rehan Hanif hoped that Prime Minister Imran Khan would now prioritize some of the urgent economic issues being faced by the country and pay special attention to the problems being suffered by the business and industrial community of Karachi since long.

Recalling the last meeting with Imran Khan on July 22, 2018 at a reception hosted by KCCI just a couple of days before the election, BMG leadership and KCCI Office Bearers expected that Prime Minister Imran Khan would fulfill all his commitments made to the business community of KCCI, particularly his pledge towards improving the infrastructure of Karachi and resolving the issues being faced by the business and industrial community of this city which continues to contribute a mammoth share of more than 65 percent revenue to the national exchequer despite all odds.

They stressed that PM Imran Khan must gather a team of economic experts, reliable and honest members of Business Community, who have absolute know-how of the issues on top priority from different sectors of the economy. The proposed team comprising of genuine representatives of business and industrial community would surely be able to prudently guide the government in formulating numerous policies directly or indirectly affecting the trade and industry.

This step would certainly create a win-win situation and would be warmly welcomed by the entire business and industrial community of Pakistan as it is in the larger interest of the country, they added. BMG leadership and KCCI Office Bearers extended full support and cooperation to Prime Minister Imran Khan and his team in order to ensure long lasting progress and prosperity for the entire country.

For more information, contact:
Director Press/Electronic Media and Public Relations
Karachi Chamber of Commerce and Industry (KCCI)
Aiwan-e-Tijarat Road, Off Shahrah-e-Liaquat,
Karachi-74000
Phone: +92-21-99218001-09
Fax: +92-21-99218040
Email: info@kcci.com.pk, secretary@kcci.com.pk
Website: www.kcci.com.pk

FPCCI felicitates Imran Khan on assuming charge of 22nd Prime Minister

Karachi, August 20, 2018 (PPI-OT): Syed Mazhar Ali Nasir, Senior Vice President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has extended heartiest felicitation to Imran Khan on assuming the charge of the 22nd Prime Minister of the Islamic Republic of Pakistan. Referring to Imran Khan’s maiden speech, he said that his resolve to ensure strict accountability across the board was highly appreciated by the business community in particular and the masses in general.

He hoped that under his dynamic leadership the cash starved country would be steered out of the inherited multi-faceted economic and foreign policy challenges and assured him of all-out support from FPCCI in strengthening Pakistan’s economy.

For more information, contact:
Secretary General
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
B-1, Federation House, Main Clifton Road,
Shahra-e-Firdousi, Karachi-75600, Pakistan
Tel: +92-21-35873691, 93-94
Fax: +92-21-35874332
Email: info@fpcci.com.pk
URL: www.fpcci.com.pk

Indian troops martyr two more youth in Baramulla

Srinagar, August 20, 2018 (PPI-OT): In occupied Kashmir, Indian troops in their fresh act of state terrorism martyred two more youth in Baramulla district. The youth were killed during a siege and search operation in Kasturi Naar in Uri area of the district. One youth was killed on Sunday by Indian troops in the same area, raising the toll to three in less than twenty-four hours.

The search operation was launched and body of one youth was recovered, claimed Indian Defence spokesman in Srinagar adding that operation was going on in the area. Meanwhile, Indian police during house raids arrested Hurriyat activists Irfan Ahmad Mir, Aushiq Hussain Baba, Irshad Ahmad and Feroz Ahmad from Ganderbal and Kupwara districts.

For more information, contact:
Kashmir Media Service
Phone: +92-51-4435548, +92-51-4435549
Fax: +92-51-4861736
Email: info@kmsnews.org
Website: www.kmsnews.org