Pacra has maintained the long-term and short-term entity ratings of Jahangir Siddiqui and Company Limited (JSCL) at "AA" (double A) and "A1+" (A one plus), respectively. Meanwhile, the rating of the TFCs issues of Rs 1,100 million and Rs 1,250 million has also been maintained at "AA" (double A).
These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments. The ratings reflect strong risk absorption capacity of the company emanating from sound equity structure and sizeable strategic investment portfolio with considerable liquidity.
This helps the company in managing its financial risk as well. Although the company's significant exposure to inherently volatile stock market exposes its earnings to high vulnerability, the management has sound controls in place to manage the associated risks.
JSCL's strategic book is mainly equity financed and leveraging is largely a function of its trading portfolio, which currently is modest in size, hence significant deleveraging. Meanwhile, the management's effort to strengthen its overall systems and controls, and plans to put in place a vibrant performance monitoring mechanism for its subsidiaries bodes well for the company.-PR
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