The Pakistan Credit Rating Agency (Pacra) has assigned long-term and short-term entity ratings of "AAA" (Triple A) and "A1+ (A One Plus) respectively to Pakistan State Oil - the largest oil marketing company of Pakistan.
These ratings denote the lowest expectation of credit risk emanating from an exceptionally strong capacity for timely payment of financial commitment. These are the highest credit ratings in Pacra's rating scale. PSO's ratings reflect its dominating position in the domestic oil marketing business supported by its spread over the country's marketing and distribution infrastructure network, which makes it the main beneficiary of growth in demand for POL products.
The ratings also recognise the restructuring efforts of the company's forward looking management that has engendered a sustainable improvement in overall operations, differentiating it from a typical public sector entity, and enabling it to better withstand competitive pressures.
The latter is evident from the company's retail business, which has benefited from the up gradation of retail outlets, as well as product diversity and innovation. Above all, the rating take into account the company's low risk profile, and a very strong capacity for timely payment of financial commitments.-PR
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