The Pakistan Credit Rating Agency Limited
24-Dec-18
Analyst
Adnan Dilawar
adnan@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Corporate Ratings | Jun-18
- Methodology | Correlation Between Long-Term And Short-Term Rating Scale | Jun-18
- Methodology | Holding Company | Jun-18
Related Research
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PACRA Maintains Entity Ratings of TPL Corp Limited
| Rating Type | Entity | |
|
Current (24-Dec-18 ) |
Previous (05-Apr-18 ) |
|
| Action | Maintain | Initial |
| Long Term | A | A |
| Short Term | A1 | A1 |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The ratings reflect TPL Corp Limited's diverse pool of investments and its evolving structure as a HoldCo. The Group started its journey with tracker and insurance business. The tracker business remains among the top players of the sector. General insurance business made significant strides in the auto business and is now catering to the full spectrum of insurance business including fire, marine, travel etc. TPL Properties Ltd is operating as a stable business with its flagship property enjoying 100% occupancy. TPL Life Ltd is offering a full suite of health and life insurance products and is building a portfolio in micro and mass retail segments. TPL Maps (Pvt) Ltd is the only licensed maps Company in Pakistan and offers solutions in mapping and navigation segments. TPL Rupiya (Pvt) Ltd is an e-payments Company which facilitates payments via customer’s bank account, mobile wallet or mobile phone account and is a service provider to Lahore Transport Company (LTC). The ratings take comfort from Group support and its ability to raise funds as evident by recent right issue. TPL Corp has lately assimilated the HoldCo character. This is expected to evolve with more structural interaction and oversight of its investment portfolio.
The ratings depend on performance of existing strategic investments and execution of their envisaged business strategies. Going forward, revenue from investments resulting in better profits and liquidity remains important. The sustained compliance with the security structure of the TFC is critical.
About
the Entity
TPL Corp Limited is a public limited company listed on Pakistan Stock Exchange. The principal activity of the Company is to make investments in Group and other companies. The Company was incorporated in Pakistan on December 04, 2008 as a private limited company and converted into public company in 2009 and got listed on Pakistan Stock Exchange Limited on July 16, 2012. The name of the Company has been changed to TPL Corp Limited w.e.f. November 24, 2017.
TPL Holdings (Private) Limited holds 62% stake in TPL Corp. 4.40% is held by Banks, DFI, NBFI while remaining is held by general public and others.