Pakistan Credit Rating Agency Limited assigns Security Grading to Security and Management Services

Lahore, December 14, 2015 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has assigned initial Security Grading of “SG2” (SG two) to Security and Management Services (Pvt.) Limited (SMS). The grading denotes SMS’s strong ability to provide protection services as per terms of contract.

SMS is part of an integrated security services group, Pathfinder group. The company provides premier guarding services to high profile and sensitive clients, including the US Embassy. SMS has developed extensive infrastructure to support its operations with proper policies and procedures in place. It has dedicated control rooms and training facility for smooth operations.

The group is streamlining its operations by segregating its manned guarding and CIT businesses. As a consequence, sizeable manned guarding business (from Wackenhut – another group company) would be transferred to SMS. The transition is expected to be completed by Jan 01, 2016. This would make SMS the largest guarding company in Pakistan (~8000 guards). Guarding, with the exception of high profile clients, have relatively low margins. However, the intended consolidation should bring economies of scale, in turn, relief in margins. Smooth transition of this initiative will remain critical for future prospects. The company has modest leveraging.

For more information, contact:
Hammad Rashid
Analyst
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
Email: hammad.rashid@pacra.com
Web: www.pacra.com