Pakistan Credit Rating Agency maintains Entity Ratings of Jehangir Siddiqui Investments

Lahore, July 13, 2012 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and the short-term entity ratings of JS Investments Limited at “A+” (Single A Plus) and “A1″ (A one), respectively. These ratings denote low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.

The ratings reflect the company’s sustained efforts at maintaining its assets under management, in a tough operating environment. JSIL has lately re-aligned its organization structure while strengthening the human resource.

The risk absorption capacity of the company is improving with gradual reduction in debt and JSIL’s emergence into profitability. However, the company’s performance remains constraint owing to muted growth in AUMs as against the industry trend, thereby restraining the core revenue stream.

Meanwhile, JSIL remains exposed to market risk through investments in its own funds, mainly equity. Nevertheless, strong financial profile of JS Group remains a source of comfort.

The rating is dependent upon management’s ability to effectively execute its business strategy for growth in AUMs, in turn, augmenting the core fee revenue, hence profitability. Herein, the challenge would be diversity of funds including contribution from the retail segment. Moreover, strengthening the management platform while keeping a check on, the cost structure, leading to improved funds’ performance is important.

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