JCR-VIS Credit Rating Co (JCR-VIS) has reaffirmed the medium to long-term entity rating of Crescent Leasing Corporation (CLCL) at 'A+' (single A plus) the short-term entity rating at 'A-1' (A one) and the medium to long-term rating of TFC-2 issue at 'AA-' (double A minus).
The outlook on these ratings is 'stable'. The preliminary rating of 'AA-' (double A minus) with 'stable' outlook assigned to the company's five-year terms finance certificate of Rs 250 million has also been converted to final rating.
Over the last couple of years, major players in the leasing industry have capitalised on the upward trend in the capital markets, which has led to higher profits.
Leverage-driven growth in lease assets and investments has been particularly pronounced during the year. Ratings assigned to CLCL take into account its sound asset quality and strong profitability indicators.
The risk profile has by and large remained consistent with our ratings. The company also plans to inject equity that will help strengthen capitalisation and build capacity for future growth.
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