November 27, 2018 (MLN): Pakistan Credit Rating Agency (PACRA) has maintained entity ratings of First Fidelity Leasing Modaraba at ‘BBB+’ for long term and ‘A2’ for short term, with a ‘stable’ outlook forecast.

As per the press release issued by PACRA, the ratings reflect adequate financial profile of FFLM supported by its Debt free structure. However, subsequent benefits have been limited as significant portion of the asset structure is invested in non-earning/ illiquid assets mainly less liquid investment property – Enplan – and Murree villas.

The ratings are dependent on the management's ability to envisage a business plan for the Modaraba. Timely liquidation of investment in “Enplan” and “Murree Villas” is important to bring viability to the Modaraba. The management is making continuous efforts. Meanwhile, any debt acquisition should be considered carefully.

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