📈 Fitch Upgrades AMW Capital Leasing to ‘BBB+(lka)’; Outlook Stable

• Key Rating Drivers - Fitch Ratings upgraded AMW Capital Leasing And Finance PLC (AMWCL) to 'BBB+(lka)' from 'BBB(lka)' with a Stable Outlook. - Driven by the strengthened credit profile of parent Associated Motorways (Pvt) Ltd (AMW) following the resumption of vehicle imports in early 2025 after a 5-year hiatus. • Parental Support & Synergies - Rating is support-driven, reflecting AMW’s 90% ownership, shared branding, and operational integration. - Resumed imports restored captive vehicle financing synergies near pre-ban levels, though potential support needs remain large relative to parent resources. • Sector & Financial Profile - Franchise Scale: Holds 0.5% of total finance and leasing sector assets (end-1Q26). - Portfolio Mix: Weighted towards motor-car financing, alongside a small but growing share in two-wheeler financing. - Asset Quality: Non-performing loan (NPL) ratio improved in 1Q26 (2025: 7.4%, 2024: 11.9%), though still above the 4.4% sector average. - Profitability: Pre-tax profit to average assets fell to 3.7% in 1Q26 (2025: 4.9%), trailing the sector benchmark of 6.6%. • Rating Sensitivities - Downgrades could result from weakening in AMW’s credit profile, reduced parent ownership, or aggressive growth in non-captive lending.