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The Pakistan Credit Rating Agency Limited
Press Release

Date
31-Mar-22

Analyst
Maryam Arshad
maryam.arshad@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Harmonizes IFS Rating of Crescent Star Insurance Limited

Rating Type IFS
Current
(31-Mar-22 )
Previous
(28-Jan-22 )
Action Harmonize Maintain
IFS Rating A (ifs) A-
Outlook Stable Stable
Rating Watch Yes Yes

Insurer Financial Strength (IFS) rating is an independent opinion on the relative “capacity of an insurance company to meet policyholder and contract obligations”. To facilitate insurance companies and users of IFS ratings, PACRA has modified the IFS rating scale. The primary objective behind this modification was to: a) Create distinction in symbols and definitions of IFS Ratings and Credit Ratings; previously same symbols were being used for both type of ratings. Now IFS symbols are exclusive for IFS ratings b) Eliminate ambiguities in terms of “Rating Category” and “Notch”; this has now been achieved in the modified scale, which will be helpful in understanding the meaning and connotation of each rating category and notch, c) Update certain definitions for more clarity.
This is expected to eliminate any overlap or ambiguity regarding rating categories and notches; thus, facilitating all stakeholders. The modified scale is applicable for all outstanding IFS ratings including “Crescent Star Insurance Limited”.

About the Entity
Crescent Star Insurance Limited (CSIL), a listed company, was established in 1957. In Feb-2013, new management invariably revamped the entire operating structure of the Company with a new business strategy. The auditors of the company are Crowe Hussain Chaudhury & Co. Chartered Accountants. Some of the major points that the auditors have raised are being addressed by the management, duly expected to reflect in the next report, as per the management representation. Mr. Naim Anwar chairs the board of directors which comprises eight members. Members of BoD, nominated by the sponsors, comprise professionals belonging to technology, engineering, health sciences and NBFCs sectors.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.