Oil and Gas Development Company Limited (OGDCL) is rated Triple A/A-One Plus by JCR-VIS Credit Rating Company Limited Japan, the Member Association of Credit Agency in Asia (ACRRA) for the medium to long-term rating declared 'Stable' here today.
The ratings of OGDCL factor in the predominate government held shareholding in the company as well as the company's position as the largest exploration and production (E&P) company in Pakistan.
The rating derive strength from the strategic nature of the company's products, as driver of the national economy and its shortfall locally, leads to assured demand situation for all production and the fact that OGDCL holds a considerable portion of the country's total exploration acreage.
The rating decision also incorporates the management's decision to explore off-shore drilling opportunities as well as the emphasis placed on the aggressive exploration program by maximising usage of available resources in order to increase the pace of new oil and gas discoveries.
The rating committee took note of the robust financial profile of OGDCL that has allowed for heavy expenditure for exploration activities to be met comfortably through internal cash generation with enough margins to allow the company to build a significant liquidity cushion over the years.-PR
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