PACRA Maintains Entity Ratings of Orient Rental Modaraba - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- November 01, 2022 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)

Quote

Orient Rental Modaraba (ORM or the Modaraba) is a multi-purpose perpetual Modaraba, having focal operations in two segments; Ijarah Rental (Genset Rental) and Operations and Maintenance (O and M) agreements. The Modaraba enjoys patronage from its sponsors (ASJN Group), with additional benefits gained through its complementary business nature. The presence of key Group Management Personnel in the Modaraba boosted ORM's operational efficiency, consequently, enduring economic instability caused by the political instability.

The economy gained momentum in the aftermath, in turn, translating into a performance boost for the Modaraba. Ijarah rentals remained the dominant revenue source, capturing a major share in the textile sector. Additionally, stable returns generated from O and M arrangements placed further comfort on the top line. The rating takes comfort from the experienced management and stable performance of the Modaraba. There are plans to further augment the O and M revenue stream as the demand mix tilts towards the latter.

The Modaraba has been profitable on account of the high utilization of the rental fleet, due to the...

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