Pakistan Credit Rating Agency Limited maintains entity ratings of TPL Trakker

Lahore, February 18, 2016 (PPI-OT): The Pakistan Credit Rating Agency Limited (PACRA) has maintained the long-term and short-term entity ratings of TPL Trakker Limited (TPL) at “A-” (Single A minus) and “A2” (Single A two) respectively. These ratings denote a low expectation of credit risk with strong capacity for timely payment of financial commitments.

The rating incorporates TPL’s leadership position in tracking industry, emanating from its diverse product portfolio and superior technology infrastructure. The company is poised to expand tracking business in the international market. Meanwhile, ventures on the cards include online payment solution – TPL Rupiya – and E-Commerce in collaboration with an established international player.

Funding is being arranged through a long term Sukuk which, in addition, shall be meeting working capital needs of core operations. In the ongoing period, sizeable proceeds against sale of an investment have provided resilience to cash position. Sustainability, from incremental cash flows from core operations, going forward, remains important for coverages which are currently subdued to some extent.

The ratings are dependent on the company’s ability to sustain its market share and technological edge in the industry. Adherence to good financial discipline while strengthening debt servicing capacity through improving cash position is vital.

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