PAIR Investments to diversify its credit portfolio by tapping new market segments: PACRA

December 27, 2018 (MLN): Pakistan Credit Rating Agency (PACRA) has maintained entity ratings of PAIR Investment Company Limited at ‘AA’ for long-term and ‘A1+’ for short-term, with a ‘stable’ outlook forecast.

According to the rating agency, the assigned ratings take into account PAIR's ability to sustain its lending portfolio, in volumes. The lending portfolio quality is deteriorated by addition of some major groups into ‘non-performing category ‘which impacted the overall performance.

During the year, investment book declined; however provides comfortable cushion to the liquidity. Borrowing from financial institution remains the primary source of funding, while management’s attention is required for enhancing the deposit base as it decreased with attrition of some major groups. Liquidity position and capitalization indicators remained stable.

Going forward, PAIR is focusing on strengthening the credit portfolio by tapping new customers. Management is cognizant of the fact that they need to find new niche for growth and development, hence new avenues like SME segment, are being explored.

Moreover, the ratings are dependent on the company’s ability to sustain its financial profile while managing the associated risks encompassing active recovery of infected portfolio.

Consistent efforts by the management to add further diversity to their portfolio and at the same time stability at CEO's position remains critical for the ratings.

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