Pakistan Credit Rating Agency assigns positive outlook to ratings of Pak China Investment Company Limited : AsiaNet-Pakistan

Pakistan Credit Rating Agency assigns positive outlook to ratings of Pak China Investment Company Limited

June 30, 2014 | General Business News | Share:

Lahore, June 30, 2014 (PPI-OT): The Pakistan Credit Rating Agency Limited (PACRA) has maintained long term and short term entity ratings of Pak China Investment Company Limited [PCICL] at ‘AA-’ (Double A minus) and ‘A1+’ (A One plus), respectively.

These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments. Meanwhile, “Positive Outlook” has been assigned to these ratings.

The ratings reflect sovereign parentage – jointly owned by Governments of Pakistan and China, implying strong sponsors’ support. The company’s management is drawing a plan to grow its business on multiple fronts.

Cognizant of concentration in earnings, the company intends to establish a sustainable non-fund based revenue stream. In this regard, the role of China Advisory Desk is planned to be strengthened. Regarding fund based business, besides gradually expanding its loan book, the company has allowed its treasury function to operate in certain new investment avenues.

Importantly, the management is committed to strengthen its risk management framework in line with the growth objectives. The ratings draw comfort from the company’s robust liquidity and significantly higher capital adequacy providing the company ample room to grow operations.

The outlook on the ratings is positive. This captures the focus of new senior management in developing strategic vision of the company. This is also reflective in business plan with high focus on Chinese investment. Additionally they are also emphasizing better control environment including strengthening of policies and procedures. Meanwhile, upholding good governance standards 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

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Category: General Business News